Here are the most important news, trends, and analysis investors need to start their trading day:
1. Nasdaq futures fall, one day after technology index plunges more than 2%
Traders on the NYSE floor, May 23, 2022.
Source: NYSE
US equities futures fell on Wednesday, a day after the Nasdaq fell 2.4%, as Snap’s 43% drop in a earnings warning dragged many other tech stocks lower. The bearish Nasdaq market on Tuesday was close to a 30% drop from its most recent high. The S&P 500 fell 0.8%, breaking a two-session profit streak, but was still above the bearish market level of 20% or more down from a previous high. The Dow made a small gain for its third straight positive session. But the average of 30 shares remained in a strong correction defined by a decline of 10% or more from its most recent high.
2. Investors seek bond security ahead of minutes of May Fed meeting
Federal Reserve Chairman Jerome Powell speaks at a press conference following a meeting of the Federal Open Market Committee on May 4, 2022 in Washington, DC. Powell announced that the Federal Reserve will raise interest rates by half a percentage point to fight record inflation.
Win Mcnamee | Getty Images
Bond prices have recently been the target of the sale of shares. The 10-year Treasury yield, which is moving in the opposite direction of the price, fell by around 2.7% on Wednesday, ahead of the publication in the afternoon of the minutes of the May Federal policy meeting . Investors hope to learn more about the central bank’s thinking on inflation and the economy. Earlier this month, the Fed raised interest rates by 50 basis points, double their rise in March.
3. Still-high mortgage rates continue to reduce demand for home loans
On May 4, 2022, a sign was displayed for a house for sale in the Alhambra, California.
Frederic J. Brown | AFP | Getty Images
While 10-year yields recently fell back to the highs of late 2018 above 3%, it is still more than double the December low, raising mortgage rates and cooling demand for home loans. Applications to buy a home were flat on a weekly basis, down 16% from a year ago. Mortgage demand from home buyers is now approaching the lows last seen in the spring of 2020, at the start of the Covid pandemic, shortly before frantic demand pushed prices to a surprising pace during the last two years. Last week, home loan refinancing applications fell 2% and were 75% lower than the same week a year ago.
4. Dick Falls, Nordstrom rises after very different quarters, prospects
Cars parked in front of a Dick’s Sporting Goods store in Monroe Marketplace, Pennsylvania.
Paul Weaver | SOUP Pictures | LightRocket | Getty Images
Dick’s Sporting Goods shares plunged more than 11% in the pre-market on Wednesday, shortly after cutting their financial forecasts for the full fiscal year, citing high inflation and ongoing supply chain challenges. . Dick’s decision to downgrade comes after similar adjustments by Walmart, Target and Kohl’s. The sporting goods chain exceeded expectations on quarterly earnings and revenue as shoppers spent money on golf clubs, football equipment and sportswear.
A buyer left a Nordstrom store on May 26, 2021 in Chicago, Illinois.
Scott Olson | Getty Images
In contrast to the problems caused by inflation to other retailers, Nordstrom gained almost 6% in pre-market trading, although it fell below the highs of the night. The high-end department store chain after the closing bell on Tuesday boosted its annual sales and profit forecast. Despite a slightly larger-than-expected loss for its first fiscal quarter, Nordstrom saw sales rise 18.7% and exceeded pre-pandemic levels as buyers went try to update your wardrobes with designer brands and shoes.
5. Wendy’s largest shareholder pushes a deal for the fast food chain
The logo of a Wendy’s restaurant is seen in Plano, Texas on July 2, 2020.
Dan Tian | Xinhua via Getty Images
Wendy’s shares gained about 9% in the pre-market after it became known on Tuesday afternoon in a presentation that the major shareholder in the fast food chain, Trian Partners, is exploring a possible deal for the company. Trian, founded and run by Nelson Peltz, first invested in Wendy’s in 2005. The hedge fund currently has a 19.4% stake in Wendy’s. Trian holds three board seats in the fast food business, including one occupied by Peltz, the president. Trian said he had previously urged Wendy’s to cut restaurant overhead, improve operations and build its brand.
– CNBC’s Peter Schacknow, Diana Olick, Lauren Thomas and Sara Salinas contributed to this report.
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