BY THE NUMBERS
Dow futures rose 200 points as investors await any hints Wednesday afternoon from the Fed about when it might start tapering its massive Covid-era bond purchases. The Dow and S&P 500 had looked poised to end a three-day losing streak Tuesday afternoon but closed lower. The Nasdaq was able to close higher, ending a two-session losing streak. For the month, the Dow, S&P 500 and Nasdaq are down 4%, just over 3.7% and nearly 3.4%, respectively. (CNBC)
The Fed concludes its two-day September meeting Wednesday, releasing its latest policy statement along with quarterly economic and interest rate forecasts at 2 p.m. ET. Fed Chairman Jerome Powell is expected to brief the media 30 minutes later. The central bank is widely expected to indicate that it’s getting ready to announce a tapering timetable. No change in near-zero rates is expected. Powell has said that raising borrowing costs will be considered separately from tapering. (CNBC)
* Fed likely will wait until November for taper announcement, CNBC survey indicates
* Jamie Dimon warns Fed could be forced into a sharp move next year (CNBC)
* Stronger mortgage demand points to September surge in home sales (CNBC)
China’s embattled Evergrande agreed to settle interest payments on a domestic bond Wednesday, while the Chinese central bank injected cash into the banking system, easing fears of imminent financial contagion from the debt-laden property developer. Evergrande’s debt woes are not likely to cause the same fallout as the collapse of U.S. investment bank Lehman Brothers in 2008, analysts said. (Reuters & CNBC)
IN THE NEWS TODAY
The House passed a bill to prevent a federal government shutdown and suspend the debt limit in a step toward preventing possible economic calamity. Tuesday’s vote was 220-211, with all Democrats supporting it and all Republicans opposing it. As the measure heads to the Senate, Republicans are threatening to block it, which could leave Democrats scrambling to find another way forward. (CNBC)
U.S.-based Pfizer (PFE) and its German partner BioNTech ((BNTX)) said Wednesday they will provide an additional 500 million doses of their Covid vaccine to the U.S. government, which will in turn donate them to lower-income countries. President Joe Biden is set to hold a virtual summit with world leaders Wednesday about vaccines. (CNBC)
The FDA could make a formal decision on Pfizer‘s Covid booster shots before the CDC begins a two-day meeting on third doses on Wednesday. An FDA advisory committee voted unanimously on Friday to approve boosters for the medically vulnerable and anyone 65 or older. (CNBC)
Toast priced its IPO last night at $40 per share. That’s above the recently increased expected range, valuing the restaurant-technology vendor at about $20 billion. Toast will trade on the New York Stock Exchange under ticker symbol “TOST.” The IPO comes after a roller-coaster stretch during the pandemic. (CNBC)
Former President Donald Trump filed a $100 million lawsuit against his niece, Mary Trump and The New York Times, claiming they conspired to obtain his tax returns for the paper’s Pulitzer-winning story on his undisclosed finances. The lawsuit asserts that Mary Trump and three New York Times reporters were engaged in what the suit calls an “insidious plot” to obtain Trump‘s taxes. (NBC News)
STOCK TO WATCH
Stitch Fix (SFIX) surged more than 12% in early morning trading after reporting a surprise profit in the fiscal fourth quarter. The online shopping and styling service reported earnings of 19 cents per share versus an expected loss of 13 cents per share, according to Refinitiv. Stitch Fix also topped revenue projections and reported 18% year-over-year growth in active clients.
Disney (DIS) ticked higher in the premarket after Credit Suisse said the selloff in Disney the day prior was an overreaction and the stock could rebound more than 27% over time. Shares of the media and entertainment giant retreated more than 4% on Tuesday after CEO Bob Chapek warned of headwinds on subscription video streaming growth in the fourth quarter and projected lower-than-expected fourth-quarter subscriber growth.
General Mills (GiS) added 1.7% in the premarket after the food company reported better-than-expected quarterly earnings. General Mills posted adjusted earnings of 99 cents per share compared with the analyst consensus of 89 cents per share, according to StreetAccount. Quarterly revenue also topped projections.
Adobe (ADBE) fell 3.7% in early morning trading despite the software company’s quarterly financial results beating Wall Street expectations. The company reported earnings of $3.11 per share on revenue of $3.94 billion. Analysts expected earnings of $3.01 per share on revenue of $3.89 billion, according to Refinitv.
FedEx (FDX) dropped 6% in premarket trading after the company’s quarterly earnings missed expectations. The transport company reported earnings of $4.37 a share, 54 cents below the Refinitiv analyst consensus.
Hyatt Hotels (H) were down 1.2% in the premarket after the hotel corporation announced a public offering of 7 million Class A common shares to fund a portion of its anticipated acquisition of Apple Leisure Group.
SoFi (SOFI) jumped 3.5% after Jefferies initiated the personal finance app with a buy rating, saying the stock can jump more than 60% in the next 12 months. “We believe that ‘Flywheel’, SoFi’s synergistic business model, will continue to drive significant user growth, product adoption, and margin expansion,” Jefferies said.
Netflix (NFLX) has acquired the entire catalog of Roald Dahl, the beloved children’s author known for works including “Charlie and the Chocolate Factory” and “Matilda.” The U.S. streaming giant announced Wednesday it has bought the Roald Dahl Story Company, which manages the rights to the British novelist’s characters and stories. Financial terms of the deal were not disclosed. (CNBC)