Wall Street opens with a modest but positive tone, continuing the recovery that began late afternoon yesterday. Markets are bracing for the Fed decision, which will almost certainly result in a 50 basis point hike. However, there is still a mystery in the form of how the Fed will approach asset balance sheet reduction. However, it appears that the balance sheet reduction will proceed in a similar manner as last time, which should not lead to further declines on Wall Street. If the Fed will not be more hawkish than it is now, there is a chance that investors will realize profits after the recent declines. EURUSD is already starting a slightly larger rebound. The S&P 500 is gaining only 0,19% at the start, while the Nasdaq is lower by 0,22%. After the session on Wall Street AMD will release its financial results (AMD.US).
US100 managed to return above 13000 points. However, a return above 13300 points is needed to start a larger recovery on Wall Street. On the other hand, a drop below 12800 could open the way to the 12000-12400 zone. Source: xStation5
News from companies:
Devon Energy (DVN.US), one of the most important oil and gas companies in the US, announced its intention to pay a dividend and increase its share buyback program.
Pfizer (PFE.US) published its Q1 2022 results. The company’s revenue amounted to USD 26.55 billion against expectations of USD 24.36 billion. The company’s earnings (adjusted EPS) came in at $1.62 while $1.55 was expected. The stock lost ground in pre-market trading on the back of disappointing sales of the Covid Paxlovid drug. On the other hand, revenue from sales of the vaccine for Covid was $13.23 billion against expectations of $10.6 billion.
Alibaba (BABA.US) lost nearly 10% during Hong Kong trading but recovered nearly all of its losses. The share price volatility came after a media report that Chinese authorities were imposing some restrictions on the company’s founder Jack Ma. The stock recovered after police reported that another person with the same last name was involved in the matter. Alibaba is listed in the U.S. through an ADR.
AVIS (CAR.US) is clearly rebounding due to positive results. The car rental company posted revenue of $2.43 billion on expectations of $2.13 billion. EPS was $9.99 on expectations of $3.3 billion. The company reports increased demand due to travel in the US. The company’s shares gained over 7% in pre-session trading.