Dow Futures Advance as Investors Expect Profits from Target, Lowe and Fed Minutes

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US stock index futures indicated modest gains on Wednesday as investors set to review quarterly results for retailer companies Target and Lowe. A report on the last Federal Reserve political meeting, released later in the session, could also attract the attention of investors.

How do benchmarks work?

Futures for the Dow Jones Industrial Average
YMM20,
+ 0.72%

traded 158 points, or 0.7%, up to 24,316 those of the S&P 500 index
ESM20,
+ 0.60%

were up 15.45 points, or 0.5%, at 2,934.25, while futures on the Nasdaq-100
NQM20,
+ 0.55%

advanced 44 points to reach 9,345, a gain of 0.5%.

Tuesday the Dow
DJIA,
-1.58%

fell 390.51 points, or 1.6%, to finish at 24,206.86, near a session low, while the S&P 500 index
SPX,
-1.04%

lost 30.97 points, or 1.1%, to finish at 2,922.94. The Nasdaq composite index
COMP,
-0.53%

down 49.72 points, or 0.5%, to close at 9,185.10.

What drives the market?

The markets were vulnerable to withdrawals after the main benchmarks managed to trace much of the losses suffered in March.

Tuesday, the fragility of recent gains for indices and rangebound trade was fully visible after a lackluster day transformed into a slowdown of almost 400 points for the Dow Jones, in the middle of a report by Stat News which offered a more sober view of the phase – a result of Moderna Inc.
MRNA,
-10.41%

Coronavirus vaccine candidate.
Hope for a cure for the deadly pathogen was seen as one of the key elements necessary for the economy hit by coronaviruses to organize a real recovery in the second half of 2020 without fear of fall reprisals or winter viral epidemic, experts said.
Investors, on the other hand, seem to be focusing on the positives and focusing their attention on broader reopening plans taking place across the United States.
Ohio Governor Mike DeWine said on Tuesday that he was lifting state home care orders and instead urging residents to stay home whenever possible and maintain social distance.
Many other states were easing beach restrictions before Memorial Day vacation, and parts of New York state were entering the initial stages of reopening after Governor Andrew Cuomo said the epidemic had returned to its starting point before takeoff in late March. The Wall Street Journal reported that Connecticut will begin easing restrictions on restaurants on Wednesday.
Elsewhere in the world, South Korea was preparing to send students back to high school in the aftermath of the pandemic.
Still, investors may face a long, uneven road to recovery from a potential recession. The Congressional Budget Office has said it predicts a 38% drop in GDP in the second quarter, a forecast roughly in line with Wall Street economists, and that the federal budget deficit will hit $ 2.1 trillion in the next year. 2020.
Secretary of the Treasury Steven Mnuchin, testifying before the Senate banking committee by videoconference on Tuesday with the President of the Federal Reserve, Jerome Powell, said that delaying the reopening could damage America’s vitality. “There is a risk of permanent damage,” he said. However, Powell said it is important for the economy that Americans feel safe. “The number one thing, of course, is that people believe it is safe to go back to work so they can get out,” said the Fed chief.
“If we don’t get good public health, there is a limit to what we can do to fix this,” Boston Fed President Eric Rosengren told MarketWatch on Tuesday.
Although a number of Fed officials have already spoken, including Powell, investors may wish to analyze the minutes of the April 28-29 meeting of the Federal Open Market Committee to be held at 2:00 p.m. . Eastern for further information on the outlook for the central bank.

Which titles are targeted?
  • Urban Outfitters Inc.’s
    URBN,
    -4.52%

    quarterly results are far below Wall Street estimates. The company reported a preliminary loss of $ 138.4 million in the first quarter, or $ 1.41 per share, compared to net earnings of $ 32.6 million, or 31 cents per share, for the same period. the previous exercise.

  • Tesla Inc.
    TSLA,
    -0.69%

    will increase the price of the “fully autonomous” option on its electric vehicles worldwide by $ 1,000 starting July 1, the company said.

  • Luckin Coffee Inc.
    LK,

    is expected to resume operations on Wednesday, Nasdaq Inc.
    NDAQ,
    -2.01%

    said Tuesday evening. The Nasdaq halted trading in the company’s shares on April 7. Luckin Coffee received a notice to cancel the trading platform on May 15 due to “public interest concerns” related to the “fabricated” transactions disclosed by the company in its annual report.

  • Johnson & Johnson Inc.
    JNJ,
    -0.99%

    said Tuesday night it would stop selling talcum baby powder in North America following an avalanche of lawsuits alleging the product causes cancer.

  • Target Corp.
    TGT,
    -1.10%,
    Lowes Corp.
    L,
    -1.86%

    are about to report in the morning to L Brands Inc.
    KG,
    -2.03%,
    Take-Two interactive softwarevs.
    TTWO,
    + 4.95%

    and Expedia Group Inc.
    EXPE,
    -3.58%

    is expected to report after the end of Wednesday’s regular session.

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