5 things to know before the stock market opens Wednesday, May 4

Read Time:5 Minute, 14 Second

Here are the most important news, trends and analysis that investors need to start their trading day:

1. Wall Street set to rise ahead of Fed decision, after weaker ADP data

Traders on the floor of the NYSE, May 3, 2022.

Source: NYSE

US stock futures pointed to a higher open Wednesday ahead of the conclusion of the Federal Reserve’s two-day May meeting, which almost certainly will bring an aggressive 50 basis point interest rate hike to fight inflation. If the premarket gains were to hold by the close , it would be the third straight positive session for the Dow Jones Industrial Average, the S&P 500 and the Nasdaq, the first time that’s happened since March.

  • The Dow on Tuesday rose 0.2%. The S&P 500 climbed nearly 0.5%, and the Nasdaq advanced 0.2%.
  • Monday, the first trading day of May, saw the S&P 500 hit a new 2022 intraday low before Wall Street rallied and closed higher across the board.
  • For all of April, the Nasdaq had its worst month since October 2008. The Dow and S&P 500 had their worst since March 2020, the month the Covid pandemic was declared.

2. Bond yields rise as investors contemplate a much more aggressive Fed

Traders work, as Federal Reserve Chair Jerome Powell is seen on a screen delivering remarks, at the New York Stock Exchange (NYSE) in New York City, March 16, 2022.

Brendan McDermid | Reuters

The benchmark 10-year Treasury yield on Wednesday ticked higher but traded below the prior session’s push above 3% for a high back to December 2018. The Fed’s May meeting ends at 2 pm ET and Chairman Jerome Powell holds his typical post-meeting news conference 30 minutes later.

  • Respondents to the May CNBC Fed Survey expect the central bank to hike rates by 50 basis points again next month as it also looks to reduce its balance sheet. Survey respondents also anticipate a recession at the end of the Fed tightening cycle.
  • The market expects rate increases at the Fed’s July, September, November and December meetings of at least 25 basis points, like the move in March, which was the first hike in rates in more than more three years.
  • ADP said Wednesday morning that US companies added a much weaker-than-expected 247,000 jobs in April, as employers continue to struggle to find workers to fill open positions. The ADP data has not been the greatest indicator of the government’s monthly payrolls number, which comes Friday.

3. Lyft tanks, Uber drops after the ride-hailing companies report spotty quarters

A sign marks a rendezvous location for Lyft and Uber users at San Diego State University in San Diego, California, May 13, 2020.

Mike Blake | Reuters

Lyft shares sank roughly 25% in Wednesday’s premarket, the morning after the ride-hailing company said it would increase spending to attract more drivers, leading to forward guidance that fell short of analyst predictions. First-quarter earnings of 7 cents per share beat estimates for a 7-cent loss. Revenue of $876 million also surpassed estimates. Lyft reported 17.8 million active riders in Q1, narrowly missing estimates and lower then the fourth quarter’s 18.73 million.

Shares of Uber fell more than 3% in the premarket after the rides and giant logistics on Wednesday morning reported a better-than-expected increase in revenue during the first quarter to $6.85 billion. The company said it continues to recover from pandemic lows and won ‘t have to put up “significant” investments to keep drivers. Uber did report a net loss of $5.9 billion for the first quarter, primarily due to its equity investments.

4. Moderna blows away earnings estimates; CVS raises its outlook

The Moderna Covid-19 vaccine is prepared for administration ahead of a free distribution of over the counter rapid Covid-19 test kits to people receiving their vaccines or boosters at Union Station in Los Angeles, California on January 7, 2022.

Frederic J. Brown | AFP | Getty Images

Moderna sold $5.9 billion of its Covid vaccine in the first quarter, blowing out revenue and profit expectations. The company’s shares soared by nearly 6% in premarket trading. The biotech name on Wednesday maintained its full-year guidance of $21 billion in Covid vaccine sales . CEO Stephane Bancel said he expects Moderna to book even stronger vaccine sales in the second half of the year as governments order more shots to get ready for fall vaccination campaigns.

A CVS pharmacy is seen in Bloomsburg.

Paul Weaver | LightRocket | Getty Images

Shares of CVS Health rose roughly 1.5% in the premarket after the drugstore and benefits management giant Wednesday morning reported better-than-expected first-quarter earnings and revenue. CVS said demand increased for prescriptions as it saw a more typical cough, cold and flu season in the first quarter. Sales of over-the-counter Covid test kits helped results, but coronavirus vaccines and in-store testing declined. CVS also raised full-year guidance.

5. Starbucks suspends guidance, sweetens worker perks amid union drives

Starbucks Chairman and CEO Howard Schultz speaks at the Annual Meeting of Shareholders in Seattle, Washington on March 22, 2017.

Jason Redmond | AFP | Getty Images

Starbucks shares rose about 7% in Wednesday’s premarket, the morning after the coffee company’s fiscal second-quarter revenue topped estimates. Profit matched. Starbucks suspended its fiscal 2022 outlook, citing lockdowns in China, inflation and investments in its stores and employees. Chinese same -store sales sank 23%. US same-store sales climbed 12%.

Starbucks said it’ll hike wages for tenured workers and double new employee training as the company and interim CEO Howard Schultz seek to beat back unionization efforts. Starbucks won’t offer the enhanced benefits to workers at the roughly 50 company-owned cafes that have voted to unionize. Such changes at union stores would have to come through bargaining, the company said.

— CNBC’s Samantha Subin, Jesse Pound, Sarah Min, Vicky McKeever, Patti Domm, Steve Liesman, Jessica Bursztynsky, Spencer Kimball, Melissa Repko and Amelia Lucas contributed to this report.

Sign up now for the CNBC Investing Club to follow Jim Cramer’s every stock move. Follow the broader market action like a pro on CNBC Pro.

If you want to know more about business please go to https://updatednews24.com/category/business/

0 %
0 %
0 %
0 %
0 %
0 %
We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. We also share information about your use of our site with our social media, advertising and analytics partners. View more
Cookies settings
Privacy & Cookie policy
Privacy & Cookies policy
Cookie name Active

Who we are

Suggested text: Our website address is: https://updatednews24.com.


Suggested text: When visitors leave comments on the site we collect the data shown in the comments form, and also the visitor’s IP address and browser user agent string to help spam detection. An anonymized string created from your email address (also called a hash) may be provided to the Gravatar service to see if you are using it. The Gravatar service privacy policy is available here: https://automattic.com/privacy/. After approval of your comment, your profile picture is visible to the public in the context of your comment.


Suggested text: If you upload images to the website, you should avoid uploading images with embedded location data (EXIF GPS) included. Visitors to the website can download and extract any location data from images on the website.


Suggested text: If you leave a comment on our site you may opt-in to saving your name, email address and website in cookies. These are for your convenience so that you do not have to fill in your details again when you leave another comment. These cookies will last for one year. If you visit our login page, we will set a temporary cookie to determine if your browser accepts cookies. This cookie contains no personal data and is discarded when you close your browser. When you log in, we will also set up several cookies to save your login information and your screen display choices. Login cookies last for two days, and screen options cookies last for a year. If you select "Remember Me", your login will persist for two weeks. If you log out of your account, the login cookies will be removed. If you edit or publish an article, an additional cookie will be saved in your browser. This cookie includes no personal data and simply indicates the post ID of the article you just edited. It expires after 1 day.

Embedded content from other websites

Suggested text: Articles on this site may include embedded content (e.g. videos, images, articles, etc.). Embedded content from other websites behaves in the exact same way as if the visitor has visited the other website. These websites may collect data about you, use cookies, embed additional third-party tracking, and monitor your interaction with that embedded content, including tracking your interaction with the embedded content if you have an account and are logged in to that website.

Who we share your data with

Suggested text: If you request a password reset, your IP address will be included in the reset email.

How long we retain your data

Suggested text: If you leave a comment, the comment and its metadata are retained indefinitely. This is so we can recognize and approve any follow-up comments automatically instead of holding them in a moderation queue. For users that register on our website (if any), we also store the personal information they provide in their user profile. All users can see, edit, or delete their personal information at any time (except they cannot change their username). Website administrators can also see and edit that information.

What rights you have over your data

Suggested text: If you have an account on this site, or have left comments, you can request to receive an exported file of the personal data we hold about you, including any data you have provided to us. You can also request that we erase any personal data we hold about you. This does not include any data we are obliged to keep for administrative, legal, or security purposes.

Where we send your data

Suggested text: Visitor comments may be checked through an automated spam detection service.
Save settings
Cookies settings