Wall Street futures lower on inflation fears

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Where will the current recession on Wall Street end?

DOW JONES Ind Average futures fell 0.63% to 31,544 points, while S&P 500 futures fell 0.76% to 3,900 points. The NASDAQ 100, for its part, fell 1.13% in futures to 11,834 points. Yesterday, despite an attempt to rebound during the morning, the main indices once again succumbed to pessimism, with falls that exceeded 3% on the Nasdaq.

The higher-than-expected April inflation reading has raised concerns that the Federal Reserve’s rate hikes are not driving prices down fast enough, could force the Jerome Powell-led institution to resort to a three-quarter point moverather than the half-point pace that markets have grown accustomed to.

The great fear of investors is that a movement of this type ends up significantly slowing down economic growth, also taking into account other strong headwinds such as Russia’s war in Ukraine and the problems that China is having to stop Covid-19 .

“Until there is a significant move down in inflation, not just one data, but two, three or four consistent data points in the right direction, this market may remain range bound,” warns Mona Mahajan, strategist investment firm of Edward Jones & Co.

At the macroeconomic level, today the market will have to pay attention to the weekly unemployment data and the industrial production prices for April, which are known shortly before the open.

Apple is no longer the most valuable listed company in the world

One of the values ​​that the market will follow closely today is Apple, after yesterday the oil giant Saudi Aramco surpassed it as the most valuable company in the world on the stock market.

Aramco’s market valuation stood just slightly below $2.43 trillion on Wednesday, according to FactSet, which converted its market capitalization to dollars. Apple, which fell more than 5% during Wall Street trading, is now worth $2.37 trillion. The move is mostly symbolic for now, but it shows how markets are changing as the global economy grapples with rising interest rates, inflation and supply chain issues.
Apple is down nearly 20% from its high of $182.94 on January 4.

Among the companies that have presented results, Walt Disney falls 4.7% in the pre-opening. The entertainment giant posted worse-than-market-expected closing accounts yesterday, with fiscal second-quarter adjusted earnings per share of $1.08. The figure marks a 37% year-over-year increase, but falls short of the analyst consensus estimate of $1.19.

Revenue was $19.2 billion, up 23% from Wall Street’s $20.1 billion estimate. The positive note comes from the streaming service: Disney+ ended the quarter with 137.7 million subscribers, an increase of 7.9 million from the end of 2021.

For its part, electric van maker Rivian Auto Rg-A also posted a closing loss of $1.43 yesterday, slightly better than the Wall Street consensus estimate of $1.44. Revenue, for its part, was lower than expected, with some 95 million compared to the 130.5 million expected.

Nonetheless, the company has maintained its production target for 2022, saying it remains on track to build 25,000 vehicles this year, while anticipating increased bookings. Its shares rise 2.5% before the bell rings.

The euro falls to 1.04 dollars

In the commodity markets, oil falls slightly today, although it remains within its recent trading range of between 100 and 110 dollars per barrel in the face of uncertainty about the world economy. West Texas fell 1.27% to settle at $103.94 a barrel, while benchmark European Brent Oil Futures fell 1.37% to $105.78 a barrel.

Meanwhile, copper fell below $9,000 a tonne for the first time since October and other metals also fell on growing concerns about weak global demand.

When it comes to currencies, the dollar continues to strengthen against its major international peers. In the case of the euro, the currency cross is already at 1.04 dollars for each community currency.

In the debt markets, the return on the ten-year US bond stands at 2.8407% on Thursday, after briefly exceeding the 3% threshold yesterday after the inflation figures were released. The 30-year bond, for its part, offers a yield of 2.9942%, also below 3% again.

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