Wall Street stocks opened lower on Wednesday as traders awaited the publication of minutes from the FOMC’s latest two-day policy meeting.
As of 1515 BST, the Dow Jones Industrial Average was down 0.89% at 34,331.76, while the S&P 500 was 1.39% weaker at 4,462.00 and the Nasdaq Composite came out the gate 2.55% softer at 13,841.76.
The Dow opened 309.42 points lower on Wednesday, extending losses recorded in the previous session as market participants continued to digest a recession warning from the bond market and news on the Ukraine-Russia war.
Wednesday’s primary focus will be the latest set of Federal Reserve minutes, with investors hoping to get some insight into the central bank’s policy tightening and new details about the Fed’s plan to reduce its balance sheet.
Market participants also had one eye fixed on the latest headlines coming out of Eastern Europe, with Russia’s invasion of neighbouring Ukraine raging on. Both the European Union and the US were gearing up to hit Moscow with new sanctions on after evidence leaked of war crimes allegedly committed by Russian forces. The new sanctions were said to include a ban on all Russian coal imports
Energy prices, which have surged since the war in Ukraine broke out, were in the red at the open, with West Texas Intermediate futures down 0.76% at $101.18 per barrel and Brent crude futures 0.80% lower at $105.79 a barrel.
On the macro front, US mortgage applications fell 6.3% in the week ended 1 April, according to the Mortgage Bankers Association of America, pushing the index to its lowest since March of 2019, as interest rates continue to march higher. April’s decline follows a 6.8% slump in the previous month and marks the fourth straight week of falls. The refinancing index sank 9.9% and applications to purchase a home went down 3.4% as the average contract interest rate for 30-year fixed-rate mortgages increased to 4.9% from 4.8%, the highest since December 2018.
Still to come, Federal Reserve Bank of Philadelphia president Patrick Harker warned about inflation and the interest rate hikes needed to control rising prices on Wednesday, a cautionary tone coming just a day after two of his colleagues, governor Lael Brainard and San Francisco Fed president Mary Daly, also expressed concern over inflation.
“Inflation is running far too high, and I am acutely concerned about this,” Harker told the Delaware State Chamber of Commerce. “The bottom line is that generous fiscal policies, supply chain disruptions, and accommodative monetary policy have pushed inflation far higher than I – and my colleagues on the Federal Open Market Committee – are comfortable with,” he said. “I’m also worried that inflation expectations could become unmoored.”
Still to come, the hotly awaited Fed minutes will be published at 1900 BST.
In the corporate space, jeans maker Levi Strauss will report earnings after the close.
Dow Jones – Risers
Amgen Inc. (AMGN) $249.82 2.15%
Merck & Co. Inc. (MRK) $85.07 1.61%
Chevron Corp. (CVX) $165.94 1.58%
Johnson & Johnson (JNJ) $180.41 1.58%
Unitedhealth Group Inc. (UNH) $524.42 1.29%
Travelers Company Inc. (TRV) $182.78 0.77%
Coca-Cola Co. (KO) $62.91 0.70%
Walmart Inc. (WMT) $152.30 0.55%
Procter & Gamble Co. (PG) $155.13 0.33%
Verizon Communications Inc. (VZ) $52.94 0.31%
Dow Jones – Fallers
Salesforce.Com Inc. (CRM) $202.04 -3.85%
Walt Disney Co. (DIS) $131.39 -3.12%
Boeing Co. (BA) $177.43 -2.86%
Nike Inc. (NKE) $128.60 -2.80%
Microsoft Corp. (MSFT) $302.92 -2.56%
Visa Inc. (V) $221.13 -2.19%
Apple Inc. (AAPL) $171.54 -2.01%
Home Depot Inc. (HD) $298.87 -1.96%
Goldman Sachs Group Inc. (GS) $317.67 -1.94%
Dow Chemical Co. (DOW) $62.29 -1.89%
S&P 500 – Risers
Mosaic Company (MOS) $70.44 3.97%
CF Industries Holdings Inc. (CF) $106.30 3.43%
Pfizer Inc. (PFE) $52.44 2.34%
Amgen Inc. (AMGN) $249.82 2.15%
AbbVie Inc (ABBV) $166.87 2.10%
Archer-Daniels-Midland Co. (ADM) $92.79 2.08%
Kroger Co. (KR) $58.82 2.03%
CVS Health Corp (CVS) $101.39 1.95%
Northrop Grumman Corp. (NOC) $462.83 1.94%
Altria Group Inc. (MO) $53.66 1.94%
S&P 500 – Fallers
Norwegian Cruise Line Holdings Ltd (NCLH) $20.65 -6.93%
United Airlines Holdings Inc (UAL) $42.10 -5.84%
Carnival Corp. (CCL) $19.12 -5.44%
Arista Networks Inc. (ANET) $133.98 -5.03%
Delta Airlines Inc. (DAL) $37.08 -5.00%
Alaska Air Group Inc. (ALK) $54.12 -4.84%
Nvidia Corp. (NVDA) $247.20 -4.67%
QUALCOMM Inc. (QCOM) $138.80 -4.58%
Royal Caribbean Cr (RCL) $79.75 -4.42%
American Airlines Group (AAL) $17.06 -4.40%
Nasdaq 100 – Risers
Amgen Inc. (AMGN) $249.82 2.15%
Charter Communications Inc. (CHTR) $566.82 1.80%
Regeneron Pharmaceuticals Inc. (REGN) $702.19 1.55%
Henry Schein Inc. (HSIC) $88.42 1.47%
Kraft Heinz Co. (KHC) $40.15 1.40%
T-Mobile Us, Inc. (TMUS) $133.51 1.17%
Gilead Sciences Inc. (GILD) $60.45 1.17%
Vodafone Group Plc ADS (VOD) $16.68 0.85%
Mondelez International Inc. (MDLZ) $63.44 0.68%
Comcast Corp. (CMCSA) $48.08 0.44%
Nasdaq 100 – Fallers
Mercadolibre Inc. (MELI) $1,154.85 -5.20%
Trip.com Group Limited (TCOM) $22.35 -4.83%
Nvidia Corp. (NVDA) $247.20 -4.67%
QUALCOMM Inc. (QCOM) $138.80 -4.58%
JD.com, Inc. (JD) $58.22 -4.43%
American Airlines Group (AAL) $17.06 -4.40%
Wynn Resorts Ltd. (WYNN) $75.62 -4.36%
Align Technology Inc. (ALGN) $418.78 -4.13%
Asml Holdings N.V. (ASML) $619.90 -4.11%
Qurate Retail Inc. (QRTEA) $4.70 -4.08%
