Thornburg Investment president and CEO Jason Brady provides insight into how the Fed raising rates will impact the financial economy.
U.S. stocks traded higher Wednesday ahead of an expected interest rate increase from the Federal Reserve.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 33240.09 | +111.30 | +0.34% |
| SP500 | S&P 500 | 4179.23 | +3.75 | +0.09% |
| I:COMP | NASDAQ COMPOSITE INDEX | 12527.031576 | -36.73 | -0.29% |
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The Fed is expected to announce the second of several anticipated increases this year as the central bank seeks to combat soaring inflation, which is at a high not seen in four decades. Traders are forecasting a 50 basis point hike.
Fed Chairman Jerome Powell (Fox News Channel)
Fed Chairman Jerome Powell confirmed last month that central bank officials are likely to raise interest rates by a half-point in May and subsequent months.
In earnings, Starbucks reported record quarterly sales of $7.6 billion, which matched Wall Street’s estimates. Adjusted earnings of 59 cents per share fell short of estimates.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SBUX | STARBUCKS CORP. | 79.84 | +5.51 | +7.41% |
Shares of Lyft Inc. plunged after the ride-share company said it would have to spend more to attract drivers and forecast operating earnings less than Wall Street estimates. Uber Technologies fell in sympathy even though it reported a solid quarter and delivered an upbeat forecast.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LYFT | LYFT INC. | 21.80 | -8.96 | -29.13% |
| UBER | UBER TECHNOLOGIES INC. | 26.87 | -2.60 | -8.82% |
WHAT DO FEDERAL RESERVE INTEREST RATE HIKES MEAN FOR MAIN STREET?
CVS shares ticked higher after raising its full year outlook as prescription demand helped ease falling COVID-related services.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CVS | CVS HEALTH CORP. | 96.29 | +0.29 | +0.30% |
In the afternoon, we’ll hear from MetLife, Allstate, and Ebay.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MET | METLIFE INC. | 67.01 | +0.38 | +0.57% |
| ALL | THE ALLSTATE CORP. | 130.24 | +0.53 | +0.41% |
| EBAY | EBAY INC. | 53.51 | +0.05 | +0.09% |
In other economic news, ADP’s National Employment report for April came in at 247,000 sharply below the estimated 395,000 and trailing March’s tally of 455,000.
The Commerce Department is out with the U.S. trade balance for March. The monthly deficit in goods and services rose to a record $108.9 billion, up sharply from the previous record of $89.2 billion amid huge demand for imported goods and rising prices tied to inflation.
JOB OPENINGS CLIMB TO FRESH HIGH IN MARCH AS RECORD NUMBER OF AMERICANS QUIT THEIR JOB
RUSSIA INVADES UKRAINE: LIVE UPDATES
Oil prices rose Wednesday morning following a drawdown in U.S. crude and fuel stockpiles and concerns about slowing demand from China. West Texas Intermediate crude futures rose $3.82, or 3.7%, to $106.25 a barrel. Brent futures rose $3.74, or 3.5%, to $108.71 a barrel.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| USO | UNITED STATES OIL FUND L.P. | 79.22 | +2.54 | +3.31% |
| BNO | UNITED STS BRENT OIL FD LP UNIT | 31.27 | +1.06 | +3.53% |
Bitcoin traded around $38,000.
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FOX Business’ Ken Martin and The Associated Press contributed to this report.