Hello. I'm Patricia Kowsmann, bringing you the latest ahead of the opening bell.
Investors are moving past Fed Day jitters.
U.S. stock futures rose Thursday. Major indexes were choppy Wednesday after Federal Reserve Chair Jerome Powell indicated the bar to cut interest rates had gone up. That somewhat eased concerns about potential hikes-but further clouds the outlook for when cuts may begin.
The focus now shifts to Apple's quarterly results, due after the market close.
Follow our live coverage throughout the day for the latest news affecting markets.
Meanwhile, our chief economics commentator, Greg Ip , tackles a big question: Is the stalled inflation noise or a new trend?
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Stocks to Watch
Shell (UK:SHEL , SHEL) : The British energy company unveiled a new $3.5 billion share-buyback program and reported first-quarter adjusted earnings that fell by less than expected. Shares advanced more than 1% in London.
Novo Nordisk (DK: NOVO.B , NVO) : The Danish pharmaceutical behemoth raised its full-year guidance to reflect better pricing in the U.S. and ongoing demand for its weight-loss and diabetes drugs. However, shares fell around 2% in Europe.
Banco de Sabadell (ES:SAB) : The Spanish lender's shares rose more than 6% after details of Banco Bilbao Vizcaya Argentaria's merger proposal were disclosed. BBVA (ES:BBVA , BBVA) shares fell roughly 2%.
Qualcomm $(QCOM)$ : The chip company's shares advanced more than 4% in premarket trading after it reported a slight increase in quarterly sales. Qualcomm said its inroads in supplying chips to automakers helped drive sales.
Etsy $(ETSY)$ : Shares of the online marketplace slumped 12% in thin premarket trading after its chief executive warned about ongoing pressure on consumer-discretionary spending. The company's first-quarter net income declined.
Earnings are due from ConocoPhillips $(COP)$ , Moderna $(MRNA)$ and Apollo Global Management $(APO)$ this morning. Apple $(AAPL)$ will report after the market close.
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Stalled Inflation Vexes the Fed. Is It Noise or a New Trend?
By Greg Ip
Explaining why underlying inflation fell steadily from its pandemic peak of over 5% in 2022 to under 3% at the end of last year is straightforward: improved supply, softer demand and well-anchored inflation expectations.
Explaining why it stalled in the first quarter is a lot harder. The fundamentals still look good: Supply and demand are coming back into balance, at least in the labor market, and inflation expectations have edged lower.
There's a case that the past three months were noise, inflation is still headed to 2% , and the Federal Reserve should cut rates soon.
But at its meeting this week Fed officials didn't make that case , and you can't blame them. What looks like noise today may be turn out to be the trend, leaving inflation closer to 3% than the Fed's target of 2%.
Keep reading .
The Wall Street Journal's Evan Gershkovich is being wrongfully detained in Russia after he was arrested while on a reporting trip and accused of spying-a charge the Journal and the U.S. government vehemently deny. Follow the latest coverage , sign up for an email alert , and learn how you can use social media to support Evan.
Charting the Markets
Warren Buffett recently warned that Berkshire Hathaway has "no possibility of eye-popping performance." That hasn't cooled the ardor of his fans, who could make Berkshire the only non-tech company in the U.S. worth $1 trillion .
Europe is breaking a longstanding taboo and allowing state support for companies in a bid to boost its industries and stay competitive with the U.S. and China.
Chocolate lovers rejoice: Cocoa prices are plunging from last month's record highs, suggesting the end of one of the year's hottest trades .
Must Reads
Tesla's move this week to lay off much of the team responsible for creating the largest electric-vehicle charging network in the U.S. threw the industry into a state of shock and confusion .
Exxon Mobil is set to close its $60 billion megadeal for Pioneer Natural Resources following an agreement with antitrust enforcers not to add former Pioneer Chief Executive Officer Scott Sheffield to its board of directors, The Wall Street Journal reported .
The Small Business Administration provided $390 billion in Covid disaster loans during the pandemic. Now small businesses owe billions in late fees .
More:
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Buy Side from WSJ: The Best Grills, According to Cooks and Barbecue Experts
About Us
We want to be the first place you go to get ready for the opening bell every day. This newsletter is written by Patricia Kowsmann ( @kowsmann ).
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
May 02, 2024 06:39 ET (10:39 GMT)
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