Hello. I'm Daniel Silva, here to bring you the latest on the markets this Tuesday morning. Markets are in a holding pattern, ahead of Wednesday's Federal Reserve rate decision, and—given that a cut isn't in play this week—the updated 'dot plot' charting Fed officials' policy forecasts. For now, stock futures are a tad lower. On Monday, the S&P 500 and Nasdaq Composite closed at records in a quiet day of trading. 🚨 Follow our live coverage throughout the day for the latest news affecting markets. Meanwhile, our Nick Timiraos looks ahead to the Fed, and how investors will scrape for clues about future rate cuts.
Stocks to Watch 🔎
- Apple : The company's developers conference continues on Tuesday. Apple introduced a new AI system Monday and said it was partnering with ChatGPT-maker OpenAI.
- GameStop : Meme lord Keith Gill posted another portfolio screenshot late Monday suggesting he still held his GameStop shares and options. The videogame retailer's shares were little changed in premarket trading.
- Eli Lilly : The drugmaker's shares were higher in offhours trading. The Food and Drug Administration gave its backing late Monday for Eli Lilly's new Alzheimer treatment.
- Coinbase : The crypto exchange's stock slipped 3% premarket, mirroring a decline in the price of bitcoin. Bitcoin exchange-traded funds had significant outflows on Monday.
- Oracle : The software company is due to report earnings after the market close.
Investors will obsess Wednesday over whether Federal Reserve officials pencil in one or two interest rate cuts this year. For policymakers, difficult decisions and looming divisions over whether and when to cut interest rates are a problem for later—not right now. Instead, the fixation on the quarterly rate projections obscures remarkable cohesion among rate-setters over their wait-and-see stance. After concluding a rapid series of rate rises last year, Fed officials remain widely united that the best course of action for an economy with solid growth and inflation still running somewhat above their target is to make no moves.
Charting the Markets
- Apple lifted the veil Monday on its first generative-artificial-intelligence offerings, which will be tightly woven into the company’s operating system updates later this year. Among the open issues for investors: just how the company will generate additional revenue from the latest technology.
- Natural-gas prices have nearly doubled from lows hit in late March, rising sharply over the past month on forecasts for another sweltering summer. Adding to the jump: restraint on the part of producers, who choked back output earlier this year when prices for the fuel dropped.
- It's still tough times in the land of regional banks. Shares of Huntington Bancshares fell more than 5% Monday after the bank cut its outlook for a key metric, further weighing down lenders in the sector. The KBW Regional Banking Index is down 15% this year.
Must Reads
- The White House is close to naming derivatives regulator Christy Goldsmith Romero to head the Federal Deposit Insurance Corp., replacing the beleaguered banking agency’s longtime chairman.
- An armada of old tanker ships has sprung up to move sanctioned Russian oil. At the center of this trade: Gabon, a nation better known for its dense rainforest and a recent coup than maritime acumen.
- U.S. cities aiming to convert half-filled office towers into apartments are looking north of the border to Calgary, Alberta, which has one of the most aggressive conversion programs in North America.
This Day in Markets 📈
On this day in 1930, New York Stock Exchange President Richard Whitney tried to instill confidence in the markets by buying 60,000 shares of U.S. Steel at $160 a share. It sunk to $21 a share within two years.
Beyond the Newsroom
Buy Side from WSJ: Worried About Forever Chemicals, Bacteria or Viruses in Your Water? This Bottle Can Help
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