Stocks inch lower, FedEx soars, Klaviyo debuts
21.09.2023 posted by Admin
On Wednesday night, stock futures were hovering around the unchanged mark as investors carefully examined the Federal Reserve's earlier projections. Dow Jones Industrial Average futures were slightly down by 14 points, a minimal 0.04% decrease. Meanwhile, S&P 500 futures dipped by 0.1%, and Nasdaq 100 futures experienced a slight 0.2% decline.
During the after-hours trading session, FedEx saw a notable 5% increase in its stock price. This surge came after the delivery company reported adjusted earnings of $4.55 per share for its fiscal first quarter, surpassing analyst expectations of $3.73 per share as reported by LSEG. In contrast, homebuilder KB Home witnessed a 2% drop in its stock price, despite exceeding Wall Street's predictions both in terms of revenue and profit.
Additionally, marketing automation firm Klaviyo, which made its debut on the public markets that same Wednesday, experienced a slight decline of nearly 2% after the market closed.
These movements in the stock market followed a challenging end to Wednesday's trading session. The three major stock indices concluded the day at their lowest points, prompted by the Federal Reserve's announcement that it would maintain existing interest rates but anticipate another rate hike by the year's end. Fed Chair Jerome Powell expressed the possibility of a soft landing for the economy, although it wasn't his primary scenario.
Jimmy Chang, the Chief Investment Officer at Rockefeller Global Family Office, remarked on the surprising optimism regarding the economic outlook. Notably, there was an upward revision in the projected GDP growth for 2023, giving rise to a sense of a favorable economic scenario.
Chang highlighted the 10-year Treasury yield as a crucial economic indicator, mentioning its potential impact on the banking system. During Wednesday's trading session, the 10-year Treasury note reached levels not witnessed since November 2007, and the 2-year yield reached its highest point since July 2006.
Traders can look forward to additional economic data on Thursday. This includes the release of weekly jobless claims before the opening bell and existing home sales data later in the morning.
During the after-hours trading session, FedEx saw a notable 5% increase in its stock price. This surge came after the delivery company reported adjusted earnings of $4.55 per share for its fiscal first quarter, surpassing analyst expectations of $3.73 per share as reported by LSEG. In contrast, homebuilder KB Home witnessed a 2% drop in its stock price, despite exceeding Wall Street's predictions both in terms of revenue and profit.
Additionally, marketing automation firm Klaviyo, which made its debut on the public markets that same Wednesday, experienced a slight decline of nearly 2% after the market closed.
These movements in the stock market followed a challenging end to Wednesday's trading session. The three major stock indices concluded the day at their lowest points, prompted by the Federal Reserve's announcement that it would maintain existing interest rates but anticipate another rate hike by the year's end. Fed Chair Jerome Powell expressed the possibility of a soft landing for the economy, although it wasn't his primary scenario.
Jimmy Chang, the Chief Investment Officer at Rockefeller Global Family Office, remarked on the surprising optimism regarding the economic outlook. Notably, there was an upward revision in the projected GDP growth for 2023, giving rise to a sense of a favorable economic scenario.
Chang highlighted the 10-year Treasury yield as a crucial economic indicator, mentioning its potential impact on the banking system. During Wednesday's trading session, the 10-year Treasury note reached levels not witnessed since November 2007, and the 2-year yield reached its highest point since July 2006.
Traders can look forward to additional economic data on Thursday. This includes the release of weekly jobless claims before the opening bell and existing home sales data later in the morning.