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Dow futures fall 60 pts; Fed meeting, JOLTS data in focus

Published 05/02/2023, 06:44 AM
Updated 05/02/2023, 07:11 AM
© Reuters
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Investing.com -- U.S. stocks are seen opening in a subdued fashion Tuesday, with investors awaiting the start of the Federal Reserve two-day policy meeting as well as the release of more jobs data and corporate earnings.

At 06:50 ET (10:50 GMT), the Dow futures contract was down 60 points, or 0.2%, S&P 500 futures traded 6 points, or 0.1% lower, while Nasdaq 100 futures climbed 7 points, or 0.1%.

The main indices closed largely unchanged Monday, as the news that JPMorgan Chase (NYSE:JPM) had agreed to buy the deposits and most of the assets of First Republic Bank (NYSE:FRC) calmed a lot of the nerves surrounding the sector after a tense weekend.

The blue-chip Dow Jones Industrial Average ended Monday less than 50 points, or 0.1% lower, the same as the tech-heavy Nasdaq Composite, while the broad-based S&P 500 was just under the flatline.

Tight trading ranges are also likely Tuesday as Fed policymakers get together to discuss future monetary policy.

The U.S. central bank is widely expected to raise interest rates by 25 basis points once more in its year-long battle against inflation, before signaling a pause to assess the impact of its campaign.

The widely-watched JOLTS job openings report from the government is due later in the session, and is forecast to show that the March reading dipped to 9.775 million from 9.931M a month earlier, confirming the gradual slowdown in the labor market expected to be seen in Friday’s official jobs report.

Investors will also be looking for any news on the potential lifting of the country’s debt ceiling, after Treasury Secretary Janet Yellen warned on Monday the government could run short of cash to pay its bills by the start of June.

Earnings continue to emerge, with results due before the open Tuesday from the likes of pharma company Pfizer (NYSE:PFE) and ride-hailing firm Uber (NYSE:UBER), while auto giant Ford (NYSE:F), coffee chain Starbucks (NASDAQ:SBUX), chipmaker Advanced Micro Devices (NASDAQ:AMD), and casino operator Caesars Entertainment (NASDAQ:CZR) follow after the close.

Oil prices edged lower, continuing the previous session’s losses, as traders await another Fed interest rate hike as well as an expected drop in U.S. crude stockpiles.

Data from the industry body American Petroleum Institute, due later in the session, are expected to show another fall in U.S. crude inventories, dropping for a third consecutive week and providing some support to the market.

By 06:50 ET, U.S. crude futures traded 0.5% lower at $75.28 a barrel, while the Brent contract fell 0.4% to $78.97.

Both benchmarks dropped more than 1% on Monday after official data showed that China's manufacturing activity unexpectedly fell in April. 

Additionally, gold futures rose 0.2% to $1,996.50/oz, while EUR/USD traded 0.2% lower at 1.0956.

 

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