Market Outlook 🚀 - Fed to announce interest rate decision

PLUS: Ford beats earnings expectations despite EV loss

Inside.com Part of   Network May 03, 2023

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Results: Ford's Q1 earnings significantly outperformed estimates from Wall Street analysts. The carmaker made $1.8B in profit, or 44 cents per share, versus a loss of $3.1B in the same period a year ago. Earnings: Revenue from automotive sales came in at $39.09B versus the $36.08B expected by analysts. Electric Vehicles: Ford's EV unit posted losses, as expected by analysts. The unit lost $722M last quarter, nearly twice as much as the same period a year ago. The loss came as Ford was forced to halt production of its F-150 Lightning pickup to deal with a battery issue. Ford previously said it expects its EV unit to lose $3B this year amid efforts to boost production of the F-150 Lightning and the Mustang Mach-E.

US Markets Stock futures rose slightly ahead of today's interest rate decision.  All three major indexes fell on Tuesday, extending their losses from Monday.  Investors are predicting an 85% chance of a 25-basis point interest rate hike.  The current 10 Year U.S. Treasury yield is set at 3.43900% Dow Jones  33,609.99 -1.30% S&P 500  4,114.48 -1.28% Nasdaq  12,084.07 -1.05% Russell 2000 1,728.03 -2.33% *Stock Market data as of the last closing bell. Data received directly from the reference indexes through ICE Data Services. Do you not understand any of these figures? Check out our explainer.

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Canadian Markets HSBC said the sale of its Canadian division to the Royal Bank of Canada (RBC) will take longer than initially expected due to regulatory oversight.  The deal is now expected to be completed in Q1 2024 rather than in late 2023.  RBC is purchasing HSBC's Canadian division for $13.5B. HSBC's Canadian division is profitable and made $309M last quarter.  The Competition Bureau and the Office of the Superintendent of Financial Institutions are reviewing the deal. TSX  20,407.56 -1.01% *Canadian stock prices are as of the last close. Data received directly from the references indexes through ICE Data Services

European Markets Stocks in Europe fell on Tuesday as negative sentiment continued to dominate markets.  The Stoxx 600 was volatile during morning trading before declining steeply in the afternoon to finish down 1.24%. Oil and gas stocks dropped 4.5%, dragging down markets. A decline in Chinese factory output reported on Sunday and the likelihood of another interest rate high by the Federal Reserve created downward pressures.  BP lost 8.6% after its Q1 earnings came in below expectations.  Euro STOXX 50  4,294.85 -1.48% UK (FTSE 100)  7,773.03 -1.24% Germany (DAX)  15,726.94 -1.23% France (CAC 40) 7,383.20 -1.45% *European stock prices are as of 7 am ET. Data received directly from the reference indexes through ICE Data Services.

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Commodities Oil prices fell on Tuesday due to concerns about declining demand.  Brent and West Texas Intermediate were both down more than 5%, hitting five-week lows on Monday. The drop followed the release of data showing that Chinese manufacturing activity fell in April, suggesting that demand for oil could fall in China. The negative momentum continued into Wednesday morning as both benchmarks were down 0.2% before markets opened in the U.S. The U.S. Energy Information Administration will release stockpile data for the US later this morning.  Oil (NYSEARCA:OIL) 27.42 -4.82% Gold (NYSEARCA:GLD) 187.52 1.93% Silver (NYSEARCA:SLV) 23.35 2.01% Corn (NYSEARCA:CORN) 23.06 -0.73% Lumber (NASDAQ:WOOD) 70.26 -0.79% *Commodity prices are as of 7 am ET. Data from MarketWatch. To understand why investors track the prices of these commodities, click here.

Currency Exchange Rates The U.S. Dollar fell on Tuesday ahead of today's federal reserve policy announcement.  Data from the U.S. Commerce Department showed that factory orders rose by 0.9% in March, less than the 1.1% expected.  New employment figures showed that U.S. job openings fell for a third consecutive month in March while layoffs reached a two-year high.  The U.S. Dollar Index fell 0.22% on Tuesday.  UK(GBP) £0.80 0.56% Europe (EURO) €0.91 -0.12% Canada (Canadian Dollar) $1.36 0.44% Japan (Yen) ¥136.01 -0.28% *Exchange rates as of 7 am ET. Data from Morningstar Financial Research. To understand why we track these currencies and the differences between them, click here.

Cryptocurrency Bitcoin was flat on Tuesday, ahead of today's monetary policy announcement.  Three Democratic senators introduced a bill to increase regulatory oversight on crypto mining. If approved, the bill will seek to ensure that crypto mining companies are transparent about their carbon emissions.  Coinbase has opened an offshore cryptocurrency derivatives exchange.  Bitcoin $28,419.10 -2.83% Ethereum $1,858.81 1.51% Litecoin $87.52 0.90% Bitcoin Cash $118.38 0.58% *Exchange rates as of 7 am ET. Data from Morningstar Financial Research. To understand why we track these currencies and the differences between them, click here.

Liam Gill is a lawyer who raised $250k with just an idea and turned it into a $35M tech startup.  He now teaches entrepreneurs how to Pitch, Negotiate and Strategize so they can do the same.  Let's Connect Editor Eduardo Garcia is a writer and editor based in New York. He is the author of "Things You Can Do," an illustrated book about climate action. Bylines in The New York Times, The Guardian, Slate, Scientific American, and others. In one of his previous lives, Eduardo worked as a Reuters correspondent in Latin America for nearly a decade.

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