Market Momentum Continues After Trump Election Win
The stock market is building on yesterday’s gains, with futures for the Dow Jones, S&P 500, and Nasdaq all up around 0.2% in early trading. This comes after each index surged by 2.5% or more in the previous session. The Russell 2000, which focuses on smaller companies, is also moving higher after a 5.8% jump yesterday.
Trump Media and Tesla Shares Take a Hit
Despite the overall market optimism, shares of Trump Media are plummeting by nearly 14%, while Tesla shares are ticking lower. Meanwhile, Treasury yields remain largely unchanged after surging on the election results, and bitcoin is trading lower by about 1% to around $74,800.
Interest Rate Decision Looms
Investors are eagerly awaiting today’s interest rate decision from the Federal Open Market Committee (FOMC), which is expected to include a quarter-percentage point rate cut. This move would follow a more aggressive rate cut in September and bring the federal funds rate down to 4.5% to 4.75%. With inflation cooling and the job market showing signs of weakness, officials have projected a series of rate cuts over the coming year. A news conference from Fed Chair Jerome Powell at 2:30 p.m. is likely to provide more insight into the central bank’s plans.
Lyft Shares Soar After Strong Earnings Report
Shares of ride-hailing app Lyft are jumping more than 20% in premarket trading after the company reported better-than-expected quarterly results and raised its outlook. Lyft posted a 32% year-over-year revenue increase to $1.5 billion, ahead of analyst consensus. The company also reported a narrower net loss and projected fourth-quarter gross bookings above analyst consensus.
Mixed Results for Semiconductor Firms
Semiconductor firms are posting mixed results in their quarterly earnings reports. Shares of chipmaker Qualcomm are higher by more than 7% premarket after the company reported strong revenue growth and announced a $15 billion stock buyback plan. However, chip designer Arm Holdings is seeing its shares decline by 6% after its current-quarter sales forecast came in lower than projected.
Zillow Shares Surge on Improved Revenue and Narrower Losses
Shares of Zillow are surging by more than 14% after the real estate information site reported better-than-expected revenue and narrowed its losses. Zillow posted 17% year-over-year revenue growth to $581 million, above analyst expectations, and a net loss of $20 million, or 8 cents a share, better than expected. Company executives attribute the improved results to technology investments in an integrated transaction platform.
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