Stocks End Lower, All Eyes On The Fed This Afternoon Image: Bigstock Stocks ended lower yesterday ahead of some key earnings. After the close, Microsoft reported a -2.19% negative EPS surprise and a -0.86% negative sales surprise. It should be noted that revenue increased 12% vs. last year at this time. Nonetheless, it was a miss on both the top and bottom lines. They were down -2.68% in the regular session and -1.15% in after-hours trade. Alphabet (Google) posted a -4.72% negative EPS surprise and a -0.14% negative sales surprise. They were down -2.32% in the regular session, but were trading up 2.45% after hours. And Texas Instruments (TXN) reported a 18.36% positive EPS surprise and a 15.06% positive sales surprise. Revenue was up 14% vs. last year at this time. They were down -1.45% in the regular session, but up more than 3.00% in after-hours trade. We also saw other big names report yesterday with McDonald's and Coca-Cola reporting before the open and posting positive EPS surprises of 4.08% and 4.48% respectively. Visa reported after the close and posted a 13.79% positive EPS surprise as well. Today we'll get earnings from Meta (Facebook) and Qualcomm (343 companies in all). And tomorrow we'll hear from Apple, Amazon, and Intel (304 companies in all). In total, for the rest of the week, there's another 797 companies set to report. But what the market is really waiting for is this afternoon's FOMC Announcement when the Fed will announce whether they raise interest rates by 50, 75 or 100 basis points. The consensus is calling for 75. Traders will also want to know what their intentions are moving forward, as there are 3 more Fed meetings scheduled for the remainder of the year (September 20-21, November 1-2, and December 13-14). Interestingly, there's now speculation that the Fed will keep raising rates until the end of the year, but possibly cut rates in 2023. That's something they haven't mentioned previously, but is now being rumored by others. That's a question that is likely to be asked of Fed Chair Jerome Powell at his Press Conference after the Announcement. Additionally, whether they cut next year or not, investors also want to know if they will continue unwinding their balance sheet. Lots to unpack this afternoon. The Announcement is expected at 2:00 PM ET, and the Press Conference at 2:30 ET. We'll also get MBA Mortgage Applications, Durable Goods Orders, the International Trade in Goods report, Retail and Wholesale Inventories, the Pending Home Sales Index, the Survey of Business Uncertainty, and the State Street Investor Confidence Index. Should be a busy day. See you tomorrow, Kevin Matras Executive Vice President, Zacks Investment Research |
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