Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, the US, July 19, 2022.
Brendan Mcdermid | Reuters
Here are the most important news investors need to start their trading day:
The actions were ready to open higher on a crucial Wednesday morning. Investors are watching what the Fed will say after its two-day meeting (more on that below), and there are some key gains on the calendar. boeing reported before the bellweather Ford, Qualcomm and father of Facebook Goal are expected after the market closes. This earnings season is full of warnings about inflation and macroeconomic anxiety, but the reports have generally been good. About 70% of the more than 150 S&P 500 companies that have posted earnings so far have beaten Wall Street’s expectations, according to FactSet.
Federal Reserve Chairman Jerome Powell reacts as he testifies before a Senate Banking, Housing and Urban Affairs Committee hearing on the “Semi-Annual Monetary Policy Report to Congress” on Capitol Hill in Washington, DC, USA. , on June 22, 2022.
Elizabeth Franz | Reuters
The Fed wraps up its two-day policy meeting on Wednesday, which culminated in the central bank’s latest rate hike and remarks from Chairman Jerome Powell. So what will this increase look like, three-quarters of a point, or is there still a chance of a full percentage point? The market is leaning toward the former, but some observers also expect Powell to speak harshly about the need to raise inflation now, or at least for the next few months, as the economy slows. “It is very likely that Powell will be asked about the possibility of a recession,” said Michael Feroli, chief economist at JPMorgan. “We suspect he will say it’s a risk, but not a foregone conclusion.”
Sundar Pichai, CEO of Alphabet and Google being interviewed by CNBC’s Deirdre Bosa.
Both Alphabet Y Microsoft they sniffed at the top and bottom lines when they reported earnings after the bell on Tuesday. And shares of both companies… rose. Microsoft gave a decent guide for next year. He didn’t cut his outlook on him despite economic challenges, including a slowing US economy beset by record price growth and aggressive rate hikes from the Federal Reserve. In the case of Alphabet, it appears that the Google Parent results, while poor, were not as bad as feared. Investors will see more tech gains on Wednesday afternoon with Meta and Apple after the bell on Thursday.
Contractors work on the roof of a home under construction in the Stillpointe subdivision of Sumter, South Carolina, on Tuesday, July 6, 2021.
Micah Green | Mayor Bloomberg | fake images
Luck has changed dramatically for American homebuilders. Sales are slowing down after the market turned absolutely torrid during the height of the COVID-19 pandemicand the builders start to get nervous, offering more incentives. “We have to work harder to sell houses. We have to be more agile,” Pulte Chief Executive Ryan Marshall said in a conference call. There also does not seem to be a sign of relief in the short term. Mortgage demand softened again last week, according to the Mortgage Bankers Association. Rates remain high, as do prices, and while more homes have come on the market, supply remains tight.
A person wearing a protective mask and gloves walks out of a Chipotle restaurant in San Francisco, California, on April 19, 2021.
David Pablo Morris | Mayor Bloomberg | fake images
“The low-income consumer has definitely reduced their purchase frequency,” chipotle CEOBrian Nicol he said on the company’s conference call, after the burrito giant released its second-quarter results. “Fortunately for Chipotle, the majority of our customers are higher income household consumers.” Chipotle’s profit beat Wall Street expectations in large part because the company raised prices to stave off inflation. While the increases might have scared some customers away from enjoying the chain’s offerings, you can see from Niccol’s comment above that the company isn’t too concerned about losing the bottom end of the market. In fact, Chipotle plans to raise prices further next month.
– CNBC’s Carmen Reinicke, Patti Domm, Jennifer Elias, Jordan Novet, Diana Olick and Amelia Lucas contributed to this report.