U.S. stock futures are marginally higher after yesterday’s broad-based rally. On Jun 6, the market’s benchmark S&P 500 Index recorded its highest close since Aug 16, 2022. The tech-heavy Nasdaq Composite Index registered its highest close since Apr 20, 2022.
Wall Street is likely to remain rangebound in the next few trading sessions as market participants are cautiously waiting for Fed’s next FOMC meeting this month. Investors are also waiting for a key inflation data to be released next week.
The Fed is scheduled to meet from Jun 13-14 for its next FOMC. The CME FedWatch tool shows a there exists 76% probability that the central bank will keep the benchmark lending rate at 5-5.25%. However, 24% of respondents expect a 25 basis-point hike in June.
Inflation has declined to a great extent from its June 2022 level though it remains highly elevated. Several key economic metrics have declined steadily in the past year. However, the key labor market remained stubbornly resilient. This makes market participants indecisive about Fed’s next move regarding interest rate.
Meanwhile, China’s exports plummeted 7.5% year-over-year to $283.5 billion, marking its first decline since February. China’s exports grew 8.5% year-over-year in April. A complete negative turnaround primarily indicates lack of global demand for Chinese goods highly appreciated for their cheap price.
On the earnings front, three major consumer staples companies reported today before the opening bell. Campbell Soup Co. CPB came up with quarterly earnings of $0.68 per share for the quarter ended April 2023, beating the Zacks Consensus Estimate of $0.64 per share. The company posted revenues of $2.23 billion, surpassing the Zacks Consensus Estimate by 0.45%. For a detailed analysis of CPB’s earnings, click here.
United Natural Foods Inc. UNFI reported quarterly earnings of $0.54 per share for the quarter ended April 2023, missing the Zacks Consensus Estimate of $0.63 per share. The company posted revenues of $7.51 billion, missing the Zacks Consensus Estimate by 0.23%. For a detailed discussion on UNFI’s earnings, click here.
Brown-Forman Corp. (BF.B) came up with quarterly earnings of $0.43 per share, missing the Zacks Consensus Estimate of $0.45 per share. The company posted revenues of $1.05 billion for the quarter, marginally above the Zacks Consensus Estimate of $1 billion.
U.S. Trade Deficit increased $16 billion to $74.6 billion in April. However, the metric was below the consensus estimate of a deficit of $75.2 billion. The data for March was revised to a deficit of $60.6 billion from a deficit of $64.2 billion reported earlier. April’s exports were $249.0 billion, $9.2 billion less than March exports. April’s imports were $323.6 billion, $4.8 billion more than March imports.
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