U.S. Stock Futures and Corporate News Amidst Fed's Inflation Gauge
Nov 26, 2024 at 11:03 PM
On Tuesday night, U.S. stock futures showed only minor changes as traders eagerly await the release of the Federal Reserve's preferred inflation gauge. Futures linked to the Dow Jones Industrial Average saw an increase of 24 points, equivalent to 0.05%. Meanwhile, S&P 500 futures hovered near the flatline, and Nasdaq-100 futures declined by 0.06%. In the corporate world, several companies disclosed their quarterly results. Dell Technologies experienced a significant drop of 11% in extended trading due to a disappointing forecast for the current quarter. The company reported $24.37 billion in revenue for the fiscal third quarter, which was lower than the $24.67 billion expected by analysts. However, adjusted earnings surpassed Wall Street's expectations.Looking ahead to Wednesday, the personal consumption expenditures price index (PCE) is scheduled for release at 10:00 a.m. ET. Economists polled by Dow Jones anticipate a year-over-year increase of 2.8% for the core reading, which excludes food and energy. Investors will closely examine the data to gain insights into the Fed's rate policy decisions at its December meeting.Indeed, the Fed released the minutes from its November meeting on Tuesday. Central bank officials indicated that they expect more interest rate cuts in the future but emphasized that the pace of cuts will be gradual. Stephen Stanley, Santander U.S. Capital Markets chief U.S. economist, told CNBC's "Power Lunch" that he believes the Fed will cut rates again in December. He believes that the Fed still has some distance to reach neutral and wants to make further progress on rate adjustments.Other important data to be released on Wednesday includes personal income and consumer spending for October, which is also scheduled at 10:00 a.m. ET.This is a shortened trading week in the U.S., with the market closed on Thanksgiving Day on Thursday and set to close early on Friday. Trading volume is expected to remain relatively low. Despite this, stocks ended the day in the green across the three major averages. Both the S&P 500 and the Dow reached new intraday and closing highs.The Russell 2000 had a less-than-stellar session on Tuesday as it ended a six-day winning streak. The small-cap index lagged behind the three major averages, falling by about 0.7%, while the S&P 500 and the Dow Jones Industrial Average reached new record closes. However, the Russell 2000 is having a strong November as investors have been buying cyclical stocks since Donald Trump won a second term in the White House earlier this month. The Russell is on track for a 10.4% increase this month, outperforming the 5.5% gain of the S&P 500 and the 7.4% jump of the Dow.Some stocks are making significant moves in extended trading. Dell Technologies' stock tumbled more than 10% after reporting weaker-than-expected revenue for the fiscal third quarter. HP's shares slid 7% after providing weaker-than-expected earnings guidance for its fiscal 2025 first quarter. Workday's stock also dropped 10% after announcing that its subscription revenues and operating margin for the fourth quarter will be lower than expected.Stock futures opened with little change on Tuesday evening. Futures tied to the Dow Jones Industrial Average gained 20 points, or 0.04%. S&P 500 futures also rose by 0.04%, while Nasdaq-100 futures fell by 0.03%.For more information and the full list of stock movements, please read here.
