Following the largest one-session drop in over two years Friday, US equity futures were mixed, with investors hoping to add some broken-down tech names heading into an active week on Wall Street highlighted by the Federal Reserve''s interest rate announcement on Wednesday.
Stocks in the United States are off to their worst four-month start to any year since 1939, with the S&P 500 down 13.3%. The Nasdaq, meanwhile, has suffered its biggest monthly decline since the 2008 global financial crisis, mostly because of a surge in bond yields linked to the Fed''s hawkish policy turn.
"We haven''t seen capitulation yet, and while no one can time these things well, I anticipate more market scarcity," said Bahnsen, a wealth management business based in Newport Beach, Calif.
"My intent to focus on the quality of a portfolio''s holdings before a market top, during the inevitable correction, and after the correction concludes," he said. "Not a good idea."
- Stocks Higher, Week Ahead, Buffett, Activision And Moderna - Five Things You Must Know
The world''s economy has yet to disclose a return, despite rising inflation pressures, and supply chains remain snarled by Covid disruptions, and China is struggling to manage its recent pandemic resurgence.
According to a private survey, China''s manufacturing activity decreased to a two-year low last month, while Europe''s output index was set at its lowest levels in 15 months as raw materials prices and labor costs continued to rise.
These findings, as well as the rising US dollar, have pushed oil markets into a positive light, with WTI futures for June delivery slightly reduced at $101.94 per barrel, and Brent contracts for July decreased by $2.52 to $104.62 per barrel.
The Pfizer stock rises as data from the Covid Antiviral trial declines before the quarter quarter earnings.
Stocks are higher, week-ahead, buffett, Activision, and Moderna - Five Things You Must Know
The Activision stock rises as Warren Buffett unveils a $5.6 billion stake ahead of Microsoft''s acquisition.
In Europe, the Stoxx 600 was 1% lower in mid-day Frankfurt trading, with many regional markets closing for the traditional May Day workers holiday, while overnight in Asia, a rebound in China equities failed to provide a wider session gain for the region-wide MSCI ex-Japan index, which was 0.6 percent lower prior to trading.
The initial estimate of GDP growth last week, which indicated a 1.4% drop in the first three months of the year, added to worries that the Fed''s strengthening efforts will snuff-out growth in the world''s largest economy, although hasn''t, as yet, altered bets on either this week''s decision nor the prospect of even higher rates heading into the summer months.
Last week, that prospect sparked non-first quarterly GDP drop since the epidemic, but also a weakened first quarter earnings season, indicating that collective S&P 500 profits will only grow 4% from last year, once the energy sector is stripped-out, and 0.5 percent over the second quarter.
This week, there will be 160 businesses reporting, including Clorox CLX, Pfizer (PFE) - Get Starbucks Corporation Reportand CVS Health (CVS) - Get CVS Health Corporation Report, with markets also focused on jobs data with the JOLTS survey on Tuesday, ADP''s National Employment Report Wednesday, and the April non-farm payroll report on Friday.
FedWatch, led by the CME Group, is pricing in a 99.8% probability of a 50 basis point increase on Wednesday, as well as a 95.6% probability of a 75 basis point move at the Fed''s following its meeting in June.
Futures linked to the Dow Jones Industrial Average are looking at a modest 30 point opening bell gain on Wall Street, while those linked to the S&P 500 are priced for a 3 point decrease. Futures linked to the Nasdaq are looking at a modest 15 point opening bell decrease.
Pfizer''s stock was active in pre-market trading, down 5.5 percent after the company received disappointing late-stage data from a Covid antiviral medication, Paxlovid, late Friday ahead of its first quarter earnings later this week.
Reportshares, led by Warren Buffett, jumped 2.55% ahead of Microsoft''s $69 billion acquisition, according to a Microsoft Corporation Report.