(ABM FN-Dow Jones) The US stock markets will start lower on Wednesday.
Half an hour before the start of trading, the futures on the S&P 500 index were 1.1 lower and those for the Nasdaq 1.6 percent in the red.
“Developments in inflation, the coronavirus and fears of a slower-than-expected economic recovery due to new measures to contain the Indian variant of the virus are puzzling investors,” said Swissquote analyst Ipek Ozkardeskaya.
The stock market agenda for today is meager. Weekly oil stocks in the US are scheduled for late afternoon and tonight the minutes of the Federal Reserve’s last interest rate meeting will follow.
JPMorgan Asset Management investment strategist Vincent Juvyns does not expect the minutes to cause much movement. “Few surprises are expected,” said Juvyns.
The Fed’s communication has been fairly consistent, according to Juvyns. He will mainly look at whether there is disagreement among the central bankers about monetary policy.
The euro / dollar traded at 1.2211 on Wednesday afternoon. “The US dollar has fallen again. But we still expect moderate gains later in the year,” said ABN AMRO currency analyst Georgette Boele.
Oil became more than 2 percent cheaper and gold fell slightly in price. The US ten-year interest rate rose to 1.6570 percent.
Cryptocurrencies are under pressure on Wednesday. The price of bitcoin fell by 20 percent and that of Dogecoin even 42 percent.
Company news
Lowe’s saw sales and earnings rise sharply in the first quarter, more than analysts had anticipated. For 2021, the construction market is counting on an operating margin of 12 percent on a turnover of 86 billion dollars. The stock is likely to open 2.5 percent lower.
Target achieved comparable store sales growth of just under 23 percent and earnings per share were up 643 percent. The department store chain is also counting on growth for the second quarter and the rest of this year. The opening indication for Target is more than 2 percent positive.
JD.com achieved higher sales in the past quarter, but less profitable operationally. The number of active users rose in the first months of this year by 29 percent to just under 500 million. The stock is expected to open more than 2 percent lower.
Lock positions
The S & P500 index closed 0.9 percent lower on 4,127.83 points on Tuesday. The Dow Jones index lost 0.8 percent to 34,060.66 points and technology exchange Nasdaq lost 0.6 percent and closed at 13,303.64 points.
ABM Financial News; [email protected]; Redactie: +31(0)20 26 28 999.
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From Beursplein 5, the editors of ABM Financial News the developments on the stock markets, and the Amsterdam stock exchange in particular, closely. The information in this column is not intended as professional investment advice or as a recommendation to make certain investments.
