Stock futures tick lower after major averages claw back some of this week's losses: Live updates
Victoria’s Secret plunged 25% after reporting mixed quarterly results. The company’s earnings per share beat expectations, but revenues fell short. Victoria’s Secret also issued disappointing guidance for the full year and anticipates a bigger-than-expected decline in revenues for the first quarter. Despite the results, the company authorized a $250 billion buyback plan.
All major averages finished higher Wednesday following back-to-back losing sessions. The S&P 500 rose 0.51%, while the Nasdaq Composite added about 0.6%. The Dow Jones Industrial Average gained nearly 76 points, or 0.2%. Nine of the 11 major S&P sectors finished higher, led to the upside by utilities.
Investors monitored Fed Chair Powell’s appearances on Capitol Hill for insight on the path ahead for interest rate cuts. During the testimony before the House Financial Services Committee, Powell indicated that the policy rate is at its “peak for this tightening cycle,” but reinforced that the Fed is not ready to begin reducing rates. The market is now watching Powell’s remarks before the Senate Banking Committee.
China’s dollar-denominated exports jumped 7.1% year-over-year in the first two months of 2024. Dollar-denominated imports also increased by 3.5% during the same period. In yuan terms, China’s exports rose 10.3% year-on-year, while imports increased 6.7%.
Shares of Wuxi AppTec and Wuxi Biologics plunged over 15% and 19% respectively amidst concerns over a U.S. Senate bill that could restrict business with Chinese biotech companies. The bill, approved by the Senate homeland security committee, could potentially impact the revenue of these companies, particularly Wuxi AppTec which generates two-thirds of its revenue from its U.S. business.
Goldman Sachs expressed positivity toward Indian equities, bonds, and the rupee, as benchmark indexes in India reached fresh record highs. The investment bank believes that last year’s rally in Indian equities was driven by earnings growth, and there is potential for continued growth this year. Goldman Sachs also expects bonds to rally once they are included in the JPMorgan bond index in June.
JD.com saw its Hong Kong-listed shares spike over 8% after releasing better-than-expected fourth-quarter earnings and announcing a share buyback plan of up to $3 billion. Revenue for the quarter rose 3.6% from a year ago, while attributable income increased to 24.2 billion yuan for the full year, a 133% surge.
Japan’s Nikkei 225 hit a fresh all-time high on Wednesday, led by gains in energy and financial stocks. The motorcycle and heavy-equipment manufacturer Kawasaki Heavy Industries experienced the largest gain within the first half hour of trade.
Bitcoin cooled after a blistering rally that briefly took it above a record high. The cryptocurrency edged 0.5% lower after jumping around 8% in the previous session. The boost in liquidity and the prospect of Federal Reserve rate cuts have propelled risk assets, but market participants are urged to exercise prudent risk management due to volatility and stretched positioning.
Stock futures opened little changed on Wednesday evening, with futures tied to the Dow Jones Industrial Average, S&P 500, and Nasdaq-100 remaining flat.