Stock Futures Open Mixed Ahead of Fed’s Jackson Hole Event

[ad_1]

Equity futures traded sideways on Wednesday night to maintain near record levels as traders eagerly awaited the start of a key Federal Reserve event on Thursday.

Contracts on the S&P 500 were little changed after the index hit a new all-time high during the regular trading day and recorded a fifth straight session of gains. The Nasdaq had also reached a new record.

Shares of the Dow Salesforce.com component (CRM) edged up late in the session after the software company raised its full-year revenue forecast and exceeded second-quarter profit estimates, as the company benefited from a boost from remote workers coming are still turning en masse to Salesforce products. Shares of beauty retailer Ulta (UTLA) also rose after the company posted quarterly sales growth of 60%, pushing revenue above pre-pandemic levels.

Stocks across the board have advanced in recent sessions as traders continue to digest the latest wave of positive corporate results and overcome lingering concerns about the Delta variant.

Investors are also awaiting the start of the Federal Reserve’s Jackson Hole Symposium on Thursday, which is being held as a virtual event due to the virus. Federal Reserve Chairman Jerome Powell is expected to deliver a closely watched speech on the economic outlook on Friday, which will further disclose his and the central bank’s thinking on the timing and scope of the reduction in the purchasing program. assets of the Fed in the era of the pandemic.

According to a number of experts, Powell will likely keep his message in line with other recent public remarks, signaling that the economy has progressed towards the central bank’s targets, while remaining far from fully reaching the thresholds necessary to start to shrink.

“We don’t think the Fed is going to do anything suddenly, and we really don’t think President Powell is going to indicate that they are ready to change policy anytime soon,” said Zach Griffiths, senior macro strategist. -economics of Wells Fargo. Finance. “If you look at the July FOMC statement, they indicated that they have seen progress towards their goals, but if you listen [Powell’s] press conference, he really stepped back and said they were still far from the threshold of “further substantial progress”. We therefore expect President Powell to remain resolutely conciliatory. “

“When we look to 2022, we think the cone is in full force and is likely complete by the end of this year,” Griffiths added. “It could weigh a bit on stocks in 2022.”

Others noted that the Fed’s months-long hints of tapering helped major markets for the eventual start of this process and shift to a less accommodative policy, removing the element of surprise that might otherwise have triggered a rush. towards the volatility of risky assets.

“Powell really went out of his way to communicate too much on the taper planes. He’s been talking about it for a year. They have been reported, ”Western Asset portfolio manager John Bellows told Yahoo Finance on Wednesday. “[Former Fed Chair Ben] Bernanke in May 2013, I think, surprised a lot of people. They weren’t looking for a reduction signal, and all of a sudden Bernanke is talking about reduction. And I think it was that surprise that caused the volatility in 2013. And Powell’s desire to avoid is why he’s been so deliberate in terms of communicating their plans.

–

6:07 p.m. ET Wednesday Stock futures near record highs

Here’s where the markets were trading on Wednesday night:

S&P 500 Futures Contracts (ES = F): -0.5 point (-0.01%) to 4,492.50
Dow Futures (YM = F): +22.00 points (+ 0.06%) to 35,382.00
Nasdaq Futures (NQ = F): -2.25 points (-0.01%) at 15,362.00

NEW YORK, NEW YORK - AUG 10: People walk past the New York Stock Exchange (NYSE) on August 10, 2021 in New York City. Markets were higher in morning trading as investors look to a rare bipartisan effort in the Senate to pass a massive infrastructure bill that, if passed, will inject billions into the U.S. economy. (Photo by Spencer Platt / Getty Images) — NEW YORK, NEW YORK – AUG 10: People walk past the New York Stock Exchange (NYSE) on August 10, 2021 in New York City. Markets were higher in morning trading as investors look to a rare bipartisan effort in the Senate to pass a massive infrastructure bill that, if passed, will inject billions into the U.S. economy. (Photo by Spencer Platt / Getty Images)

–

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck