Wall Street futures fall ahead of Powell’s speech

By: News Team

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Wall Street

U.S. stocks point to an opening with no major changes on Tuesday, aimless ahead of an expected speech by Federal Reserve Chairman Jerome Powell and more business results.

At 13:00 (CET), the contract of Dow futures fell 30 points, or 0.1%, while S&P 500 futures are up 4 points, or 0.1%, and Nasdaq 100 futures A rise of 40 points, or 0.3%, is targeted.

Major U.S. reports closed lower on Monday, after the Employment Report Friday, exceptionally strong, will raise the fear that the Federal Reserve It will keep interest rates high for longer than expected to control inflation.

The index Dow Jones Industrial Average closed with losses of 35 points, or 0.1%, while the index S&P 500 fell by 0.6% and Nasdaq Composite, loaded with technology, 1%.

The speech that the chairman of the Federal Reserve, Jerome Powell published on Tuesday at the Economic Club of Washington captures the attention of investors, who are looking for more clues about how long the central bank will keep interest rates higher, fearing an economic slowdown in the coming quarters.

That said, Goldman Sachs said Monday that it now believes there is a 25% chance of the U.S. going into recession in the next 12 months, up from 35% previously forecast.

“The continued strength of the labor market and early signs of improvement in business surveys suggest that the risk of a short-term recession has diminished markedly,” the bank said in a research note.

Tuesday will also see the annual State of the Union address, where President Joe Biden is expected to highlight his political and legislative victories, unemployment at 53-year lows and progress in reducing inflation.

The quarterly earnings season continues on Tuesday, with reports from companies such as Chipotle (NYSE:CMG), DuPont (NYSE:DD) and Royal Caribbean (NYSE:RCL). So far, 254 S&P 500 companies have reported quarterly results, and 69.3% of them have exceeded expectations, according to Refinitiv.

Boeing (NYSE:BA) will also grab the spotlight on Tuesday, after the planemaker confirmed on Monday that it plans to cut about 2,000 jobs through reductions and layoffs.

Bed Bath & Beyond (NASDAQ) stock:BBBYLower ahead of the market opens after the homegoods retailer said Monday it plans to raise about $1 billion in a last-ditch effort to avoid bankruptcy.

Chegg’s shares also fell ahead of the markets opened after the education technology company posted disappointing forecasts.

The prices of the petroleum They rose on Tuesday, driven by continued optimism about the recovery in demand from China, the world’s largest crude importer, this year.

Saudi Arabia, the world’s biggest oil exporter, raised prices for its star crude for Asian buyers late on Monday for the first time in six months, expecting demand to surge from the region, especially China.

Supply disruptions also contributed to the price rise, as Turkey disrupted flows to its Ceyhan export terminal following a strong earthquake, while a blackout hit Norway’s Johan Sverdrup field.

The Energy Information Administration will release its short-term energy forecasts later this day, while the American Petroleum Institute will release its weekly estimate of U.S. crude stockpiles.

At 13:00 (CET), US crude futures are up 1.6% at $75.31 per barrel, while the Brent A rise of 1.4% to $ 82.12 is noted.

In addition, the futures of the gold up 0.1% at $1,880.45 per ounce, while the pair EUR/USD It fell 0.2% to the level of 1.0708.

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