Dow Futures Drop Nearly 450 Points Ahead of Powell Speech – Schaeffers Research

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All three major indexes are lower ahead of the open

Yesterday’s rebound from last week’s historic losses are looking to be short-lived, as recession concerns continue to snap at investors’ heels. Futures on the Dow Jones Industrial Average (DJIA) are down 448 points, while S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures point lower as well. Federal Reserve Chairman Jerome Powell is set to announce the Fed’s biannual monetary policy report to the Senate Banking Committee today, which will likely be centered around soaring inflation. Meanwhile, U.S. President Joe Biden is expected to propose a holiday on the federal gas tax, though it is facing opposition in congress. 

Continue reading for more on today’s market, including:

  • Checking in with FedEx stock ahead of earnings
  • Energy name seeing technical support. 
  • Plus, WGO’s earnings beat; ABNB gets downgraded; and Jana Partners announces stake in NEWR. 

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5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.3 million call contracts and 629,921 put contracts traded on Tuesday. The single-session equity put/call ratio fell to 0.48, and the 21-day moving average stayed at 0.64.
  2. Winnebago Industries, Inc (NYSE:WGO) announced a top- and bottom-line beat for its fiscal third quarter. The stock is enjoying premarket gains, now 1.7% higher before the bell. Year-to-date, the equity is down 38.9%. 
  3. JMP Securities downgraded Airbnb Inc (NASDAQ:ABNB) to “market perform” from “market outperform,” noting that the post-pandemic travel boost is already reflected in the stock’s valuation. ABNB is down 3% in electronic trading.  

  4. New Relic Inc (NYSE:NEWR) is up 3.4% ahead of the open, after Jana Partners disclosed a 5.4% stake and stated that the stock is undervalued. Down 58.1% year-to-date, the stock has been struggling to rebound from two-year lows. 

  5. There is no economic data due out today. 

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Stocks Shift Lower in Asia, Europe

Asian markets saw deep losses on Wednesday, weighed upon by weakening tech. Investors also eyed a more than 4% drop in oil prices, following Biden’s temporary tax suspension on gasoline. The South Korean Kospi led the losses with a 2.7% drop, while the Hong Kong Hang Seng wasn’t far behind with a 2.6% drop. The Shanghai Composite in China shed 1.2%, and the Nikkei in Japan lost 0.4%, as traders pored over the minutes from last week’s monetary policy meeting for the Bank of Japan (BoJ).

In Europe, stocks aren’t faring much better, as the major bourses erase yesterday’s gains, and oil prices in the region eye sharp losses. At last glance, the London FTSE 100 was down 1.3%, after U.K. inflation saw a 9.1% year-over-year rise in May, marking a 40-year high. Elsewhere, the French CAC 40 was last seen down 1.7%, and the German DAX has shed 2% so far today.

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