(Editor's note: The future prices of benchmark tracking ETFs, the lede, and the headline were updated in the story.)
Dow Jones and S&P 500 futures declined, while Nasdaq rose in premarket on Wednesday, following Tuesday's lower close.
New orders for manufactured durable goods in March increased by 0.8% to $318.9 billion, bouncing back after three consecutive monthly declines. When excluding the transportation sector, new orders grew by 0.9%.
In trade data, the U.S. advanced international trade deficit for goods widened to $87.9 billion in March, up from $83.5 billion in February. Meanwhile, advance wholesale inventories rose 1.4% to $932.8 billion, and advance retail inventories increased 0.7% to $823.5 billion.
Investors will be closely watching the Federal Reserve's decision to gauge how the central bank is navigating interest rates amid the ongoing U.S.-Iran war. Additionally, Jerome Powell's press conference at 2:30 p.m. ET is widely considered to be his last as Chair of the Fed.
The CME Group's FedWatch tool's projections show markets pricing a 100% likelihood of the Federal Reserve leaving the current interest rates unchanged in today's meeting.
Four out of seven 'Magnificent 7' heavyweights will announce their earnings results today after the bell, which include Microsoft Corp.(NASDAQ:MSFT) and Meta Platforms Inc. (NASDAQ:META).
Meanwhile, the 10-year Treasury bond yielded 4.36%, and the two-year bond yield was at 3.85%.
| Index | Performance (+/-) |
| Dow Jones | 0.09% |
| S&P 500 | 0.08% |
| Nasdaq 100 | 0.29% |
| Russell 2000 | 0.18% |
The SPDR S&P 500 ETF Trust(NYSE:SPY) and Invesco QQQ Trust ETF(NASDAQ:QQQ), which track the S&P 500 and Nasdaq 100, respectively, were mixed in premarket on Wednesday. The SPY was down 0.11% at $710.90, while the QQQ advanced 0.10% to $658.22.
Stocks In Focus
Booking Holdings
- Shares of Booking Holdings Inc.(NASDAQ:BKNG) were 4.13% lower in premarket on Wednesday after the company said it sees second-quarter sales of $7.070 billion to $7.206 billion, versus market estimates of $7.566 billion.
- Benzinga's Edge Stock Rankings indicate that BKNG maintains a weak price trend in the short, medium, and long terms, with a weak growth ranking.
Robinhood Markets
- Robinhood Markets Inc. (NASDAQ:HOOD) stock dropped 9.60% after its first-quarter revenue of $1.07 billion missed the Street consensus estimate of $1.18 billion. The company reported earnings per share of 38 cents in the quarter, missing a Street consensus estimate of 46 cents per share.
- Benzinga's Edge Stock Rankings indicate that HOOD maintains a strong trend in the short term but a weak trend in the medium and long terms, with a poor value rank.
Starbucks
- Starbucks Corp. (NASDAQ:SBUX) jumped 5.37% after reporting fiscal second-quarter revenue of $9.53 billion, beating analyst estimates of $9.16 billion. The coffee giant reported adjusted earnings of 50 cents per share for the quarter, beating analyst estimates of 43 cents per share.
- Benzinga's Edge Stock Rankings indicate that SBUX maintains a strong price trend in the short, long, and medium terms with a moderate growth score.
Amazon.com
- Amazon.com Inc.(NASDAQ:AMZN) was up 0.038% as it was expected to report earnings after the closing bell. Analysts expect it to post earnings of $1.65 per share on revenue of $177.30 billion.
- Benzinga's Edge Stock Rankings indicate that AMZN maintains a strong price trend over the short, medium, and long terms, with a solid growth score.
Alphabet
- Alphabet Inc. (NASDAQ:GOOGL)(NASDAQ:GOOG) was 0.14% lower as analysts expect it to report earnings of $1.65 per share on revenue of $177.30 billion, after the closing bell.
- Benzinga's Edge Stock Rankings indicate that GOOG maintains a strong price trend in the short, medium, and long terms, with a solid quality score.
Cues From Last Session
Consumer staples, real estate, and energy shares led the S&P 500's majority gainers on Tuesday, while information technology and materials sectors finished in the red.
| Index | Performance (+/-) | Value |
| Dow Jones | -0.053% | 49,141,93 |
| S&P 500 | -0.49% | 7,138.80 |
| Nasdaq Composite | -0.90% | 24,663,80 |
| Russell 2000 | -1.15% | 2.756,05 |
Insights From Analysts
Professor Jeremy Siegel remains highly optimistic about the U.S. stock market and the broader economy, emphasizing that the "most important message from the markets is resilience."
He believes that equities will maintain an upward trajectory, provided that oil prices remain roughly within $5 to $8 of their current levels. This bullish outlook is heavily supported by a robust corporate earnings season and a massive surge in artificial intelligence (AI) investments.
Siegel notes that the "AI investment cycle continues to provide a powerful tailwind for equities," with strong chip demand broadening the market's winners.
On the economic front, Siegel sees strength despite ongoing geopolitical tensions and elevated energy costs. He expects crude oil to hover between $90 and $100 a barrel, but he argues this is "workable for the U.S. economy" because the nation is a net energy exporter.
Unlike the inflation shocks of the 1970s, the current landscape features well-anchored inflation psychology. With steady job growth and consumer stability, Siegel confidently asserts that "the underlying economy is not showing signs of breaking".
Upcoming Economic Data
Here's what investors will be keeping an eye on Wednesday.
- Durable-Goods Orders: New orders for manufactured durable goods increased 0.8% to $318.9 billion.
- Durable-Goods Excluding Transportation: When excluding transportation, new orders rose 0.9%.
- Advance U.S. Trade Balance in Goods: The trade deficit in goods widened to $87.9 billion from $83.5 billion in the previous month.
- Advance Retail Inventories: Retail inventories increased 0.7% to an estimated end-of-month level of $823.5 billion.
- Advance Wholesale Inventories: Wholesale inventories grew 1.4% to an estimated end-of-month level of $932.8 billion.
- The FOMC interest-rate decision will be released by 2:00 p.m., and Fed Chair Powell's press conference will follow at 2:30 p.m. ET.
Commodities, Crypto, And Global Equity Markets
Crude oil futures were trading higher in the early New York session by 3.05% to hover around $102.98 per barrel.
Gold Spot US Dollar fell 0.67% to hover around $4,566.17 per ounce. Its last record high stood at $5,595.46 per ounce. The U.S. Dollar Index spot was 0.07% higher at the 98.7130 level.
Meanwhile, Bitcoin(CRYPTO: BTC) was trading 0.25% higher at $77,076.57 per coin, as per the last 24 hours.
Asian markets closed lower on Wednesday, except South Korea's Kospi index. Hong Kong's Hang Seng, Australia's ASX 200, China's CSI 300, India's Nifty 50, and Japan's Nikkei 225 indices fell. European markets were lower in early trade.
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