Stock futures seek direction with Fed's decision on tap

US economy will normalize if Fed raises rates next year: Market expert

Mahoney Asset Management CEO Ken Mahoney weighs in on the ‘great’ earnings season and the Federal Reserve’s expected moves. 

U.S. stock futures were little changed as traders await the Federal Reserve’s latest policy decision. 

Dow Jones Industrial Average futures fell 43 points, or 0.12%, while S&P 500 futures slipped 0.09% and Nasdaq 100 futures ticked up 0.01%. All three of the major averages finished at record highs on Tuesday with the Dow closing above 36,000 for the first time. 

The Federal Reserve concludes a two-day meeting and is expected to announce plans to begin tapering its asset purchase program as it looks to rein in inflation. The market expects the first rate hike to occur in July. 

Ahead of the Fed, the yield on the 10-year note was down two basis points at 1.53%.


In stocks, Zillow Group Inc. is shutting down its home-buying business and plans to cut 25% of its workforce after posting an unexpected loss as home values fell below what the company paid. Shares have fallen 56% from their Feb. 16 record high through Wednesday. 

CVS Health hiked its full-year adjusted profit forecast as strong demand for COVID-19 vaccines and tests bolstered the company’s quarterly results. The pharmacy chain administered more than 11 million shots and more than 8 million tests last quarter.

Activision Blizzard Inc.’s holiday-season outlook fell short of analysts’ expectations after the video game maker said two hit games would be delayed due to the recent leadership changes at the company.  

Mondelez International Inc., the maker of Oreo cookies and Sour Patch Kids, raised its full-year sales outlook as price increases and strong overseas demand helped earnings and revenue exceed Wall Street estimates. The company is planning to raise prices at the start of 2022.  

Bed, Bath & Beyond Inc. announced a marketing collaboration with grocer Kroger Inc. in which Kroger will offer baby and home products carried by Bed Bath & Beyond through and a small-scale physical store pilot beginning next year. Bed Bath & Beyond also announced a $1 billion share repurchase program.  

Deere & Co. workers rejected a contract offer, continuing a three-week old strike. The latest offer would’ve raised wages by 10% this year and 5% in 2023 and 2025 in addition to giving lump sum bonuses in 2022, 2024 and 2026.   

Eco-friendly sneaker maker Allbirds Inc. raised more than $300 million in its U.S. initial public offering, pricing 20.2 million shares at $15 apiece. The stock, which begins trading on Wednesday, will trade under the ticker BIRD. 

In commodities, West Texas Intermediate crude oil fell $1.97 to $81.94 a barrel and gold slid $4.90 to $1,784.50 an ounce.  

Overseas markets were mostly lower. 


European bourses traded mixed with France’s CAC 40 ticking up 0.02% while Germany’s DAX 30 and Britain’s FTSE 100 declined 0.06% and 0.2%, respectively. 

In Asia, China’s Shanghai Composite index slipped 0.2% and Hong Kong’s Hang Seng index lost 0.3%. Japan’s Nikkei 225 was closed for holiday. 

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