US Stocks In For Another Tough Day After Fed Rate Hike As Nasdaq, S&P 500 Futures Fall — Roku, Qualcomm Plunge On Earnings Disappointment

Zinger Key Points
  • The Fed Chair Jerome Powell's gave markedly hawkish commentary on Wednesday.
  • The market will now be all ears to the October consumer price inflation report is due next week.

The U.S. index futures are pointing to a lackluster start on Wall Street Thursday, as rate worries linger.

On Wednesday, the major averages experienced a bout of volatility in the aftermath of the Fed decision and closed notably lower. The market showed tentativeness in the run up to the Fed decision and spiked in reaction to the post-meeting policy statement.

Fed Chair Jerome Powell’s hawkish comments at the press conference dragged the major indices sharply lower.

The Nasdaq Composite settled at its lowest level since mid-October and the S&P 500 Index retreated to its lowest since Oct. 20.

U.S. Indices' Performance On Wednesday
Index Performance (+/-)   Value
Nasdaq Composite -3.36%   10,524.80
S&P 500 Index -2.50%   3,759.69
Dow Industrials -1.55%   32,147.76

Here’s a peek into index futures trading:

U.S. Futures' Performance On Thursday During Premarket Session
Index Performance (+/-)  
Nasdaq 100 Futures -0.79%  
S&P 500 Futures -0.67%  
Dow Futures -0.51%  
R2K Futures -1,24%  

In premarket trading on Thursday, the SPDR S&P 500 ETF TrustSPY declined 0.59% to $372.65 and the Invesco QQQ Trust QQQ slipped 0.73% to $263.75, according to Benzinga Pro data.

On the economic front, the Labor Department is scheduled to release the jobless claims report for the week ended Oct. 29 at 8:30 a.m. EDT. Economists, on average, expect the number of people claiming unemployment benefits to have increased from 217,000 to 220,000. The Labor Department is also due to release its third-quarter non-farm productivity report around the same time. Non-farm productivity may have rebounded to show a 0.6% sequential growth following a 4.1% drop in the second quarter.

Also at 8:30 a.m. EDT, the Commerce Department will release its trade balance report for September, with economists expecting the deficit to have widened from $67.4 billion in August to $72.2 billion in September.

S&P Global is scheduled to release its U.S. service sector and composite purchasing managers’ indices at 9:45 a.m. EDT.

The Commerce Department is set to release its factory goods orders data for September at 10 a.m. EDT. The consensus estimate calls for a 0.3% month-over-month increase in factory orders in September following a flat performance in August.

The Institute for Supply Management will release the services sector and composite purchasing managers’ indices for October at 10 a.m. EDT.

The Treasury will auction 4-week and 8-week bills at 11:30 a.m. EDT.

See also: How Jerome Powell Swung The Market Pendulum As He Went From 'Dovish' And 'Pivot' To Most 'Hawkish'

Stocks In Focus:

  • Etsy, Inc. ETSY rallied close to 10% in premarket trading following its quarterly results.
  • Other stocks running up in premarket in reaction to quarterly results include Sunrun, Inc. RUN, HubSpot, Inc. HUBS, eBay, Inc. EBAY.
  • Lincoln National Corporation LNC and Altice USA, Inc. ATUS plummeted in reaction to their disappointing quarterly results.
  • Roku, Inc. ROKU slumped close to 20% and Qualcomm, Inc. QCOM slid over 7%, reacting to weak commentary regarding the December quarter.
  • Bausch Health Companies, Inc. BHC, ConocoPhillips COP, Datadog, Inc. DDOG, Crocs, Inc. CROX, Regeneron Pharmaceuticals, Inc. REGN, Moderna, Inc. MRNA, Peloton Interactive, Inc. PTON, Nikola Corporation NKLA, Restaurant Brands International, Inc. QSR and Royal Caribbean Cruises Ltd. RCL are among the notable companies releasing earnings ahead of the market open.
  • Among those reporting after the close are Allscripts Healthcare Solutions, Inc. MDRX, Amgen, Inc. AMGN, Carvana Co. CVNA, DoorDash, Inc. DASH, Expedia Group, Inc. EXPE, Lions Gate Entertainment Corp. LGFA LGFB, PayPal Holdings, Inc. PYPL and Starbucks Corp. SBUX.

Commodities, Other Global Equity Markets:

WTI Crude oil futures, which breached the $90-a-barrel mark on Wednesday for the first time since Oct. 11, headed southward. Black gold snapped a two-session rally and traded down over 1%.

The Asia-Pacific markets were swathed in a sea of red, as traders reacted to the Fed’s rate hike and Powell’s comments in the post-meeting press conference. The Japanese market was closed for a public holiday.

European stocks opened lower and traded modestly lower in late-morning deals. The Bank of England’s Monetary Policy Committee is set to announce its rate decision at 8 a.m. EDT.

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Posted In: EarningsNewsPenny StocksGuidanceFuturesPreviewsSmall CapTop StoriesEconomicsFederal ReservePre-Market OutlookMarketsTrading Ideasearnings seasonFed rate hikeNasdaq futuresS&P 500 futures
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