5 things to know before the stock market opens Wednesday, May 25
These are the top news, trends, and analyses that traders need in order to get started with trading.
1. Nasdaq futures fell after the tech-heavy index dropped more than 2.2%
Traders in the NYSE Floor, May 23, 2022.
U.S. stock futuresTuesday, one day following the NasdaqAs of 2.4% SnapMany other tech stocks fell due to the 43% drop in ‘profit warnings’ Tuesday’s bearish Nasdaq market was just shyAn approximate 30% decrease from its highest level. This is the S&P 500The market fell 0.8% to end a 2-session winning streak. However, it was above the bearish level of 20% or more below a previous high. This is the DowThe 30-stock average managed to make a modest gain in its third consecutive positive session. However, the 30-stock index remained in steep correction with an average 10% decline from its previous high.
2. Before minutes of the Fed’s May meeting, investors seek security in bonds
Jerome Powell, the Chairman of Federal Reserve speaks to a news conference at the conclusion of a Federal Open Market Committee meeting held on May 4, 2022 in Washington DC. Powell said that the Federal Reserve would raise interest rates half a point to fight record-high inflation.
Win Mcnamee – Getty Images| Getty Images
Bond pricesThe stock market sell-offs of recent years have affected many people. It was the 10-year Treasury yieldThe inverse of price is influenced by. On Wednesday, the slipped to 2.7% ahead of the release of the minute from the after-hours. Federal ReserveAt the May policy meeting. Investors will be able to get more details about the central banks’ views regarding inflation and the economy. The Fed increased interest rates by 50 basis point earlier this month. This is double the March hike.
3. The demand for home loans continues to decline despite the fact that mortgage rates are still high
Pictured in Alhambra on May 4, 2022 is a sign for a property that’s up for sale
Frederic J. Brown | AFP | Getty Images
Even though the late-2018 highs of 3% were surpassed by the yield on the 10-year, this is still over twice the December low. This has pushed mortgage rates up. cooling demand for home loans.Applications for homebuyers were steady week-to-week and only 16% less than one year ago. The lows in mortgage demand for homebuyers are now very close to those last recorded at the beginning of spring 2020. the Covid pandemicJust a few years ago, frenzied consumer demand drove prices up at an astonishing rate for the past two year. Refinance applications were down 2%, and 75% more than they were one year ago.
4. Nordstrom grows after Dick falls, but in very different quarters.
A car is parked right in front of the Dick’s Sporting Goods Store at Monroe Marketplace in Pennsylvania.
SOPA Images | SOPA Images | LightRocket | Getty Images
Dick’s Sporting GoodsShortly after Wednesday’s premarket close, shares plunged more than 11% cutting its financial forecastFor the entire fiscal year. This was due to high inflation and continued supply chain difficulties. Following similar adjustments made by Target, Walmart, and Kohl’s the decision to lower Dick’s guidance was taken. As shoppers spend money on soccer equipment, golf clubs and other apparel, the sporting goods retailer beat its expectations for quarterly earnings and revenues.
One Nordstrom customer walks out of a store in Chicago on May 26, 2021.
Scott Olson | Getty Images
Contrary to other retailers’ inflation-driven problems, NordstromPremarket trading saw a nearly 6-percent increase, but the overnight lows were still significant. Following Tuesday’s close bell, high-end department stores chain raised its annual sales and profit forecast. Nordstrom reported a smaller-than-expected loss in its fiscal first quarter. However, sales increased 18.7% over pre-pandemic levels.
5. Wendy’s largest shareholder pushes for a fast-food deal
On July 2, 2020, the logo for Wendy’s is visible in Plano Texas.
Dan Tian | Xinhua via Getty Images
Wendy’sShares gained around 9% after the news that Trian Partners was the largest shareholder of the fast-food chain, came to light late Tuesday night. is exploring a potential dealFor the company. Trian was founded by and is managed by Nelson PeltzThe hedge fund, which first invested in Wendy’s in 2006, currently has a 19.4% interest in Wendy’s. Trian currently holds three seats on the board of the fast-food chain, with one also being held by Peltz the chairman. Trian stated that it had previously asked Wendy’s for a reduction in restaurant overhead and improvements to operations, as well as to build its brand.
— CNBC’s Peter Schacknow, Diana Olick, Lauren Thomas Sara SalinasThis report was contributed by you.
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