Big tech hearing, stock futures open ahead of Fed meeting


Stock futures opened higher on Tuesday evening before an eventful Wednesday, during which Big Tech officials would testify before Congress and the Federal Open Market Committee would issue its July monetary policy statement. A host of quarterly corporate income results will also continue to flow.

On Wednesday, Amazon (AMZN) CEO Jeff Bezos, Apple (AAPL) CEO Tim Cook, Facebook (FB) CEO Mark Zuckerberg, and Google-parent Alphabet (GOOG, GOOGL) CEO Sundar Pichai for a discussion on the House Judiciary. Will appear before the committee. A number of concerns over their market power and business practices, some of which have been investigated for antitrust issues. Many have argued that these issues have been exacerbated by the coronavirus epidemic, which has wiped out competitors and pushed the business towards stronger-than-already dominant tech companies.

“While fundamentals of FAANG have better navigated the waters of these helicopters, many of which were feared, with Amazon in particular as an obvious beneficiary of this current lockdown, the anti-trust storm cloud Are building in the Beltway, looking ahead to the rest of Big Tech. 2020, ”Wesbush analyst Dan Ives wrote in a note on Monday.

He added, “We note that most states’ investigations have focused on Google’s online advertising and more broadly with the Department of Justice on concerns that Google may use its core search business to compete For example, ”he said. “Apple lives in cross-hairs around its App Store (30% fee), which is dominated by both the US and in particular the European Union, with more in-depth scrutiny of its business practices in focus this weekend Cook. As comes before the committee. . “

Separately on Wednesday, investors are also set to receive the Federal Reserve’s latest monetary policy decision. Market participants expect that there will be no major change in this month’s statement, with interest rates at their current-zero levels. On Tuesday, the Federal Reserve said it planned to extend several of its emergency lending facilities to 2020 by the end of the year or from the previous expiration date of 30 September.

With monetary policy set in its current form to support the economy during the pandemic, investor attention has turned to the possibility of clear forward guidance to indicate that the Fed will change its monetary policy stance Can lead to what circumstances. Many economists believe this month is unlikely to be announced, however.

Wells Fargo’s economics team wrote last week, “We expect the FOMC to adopt some clear guidance, if not the September meeting and its November meeting.”

More corporate income results are also on the dock for Wednesday. Companies including General Electric (GE), Boeing (BA), General Motors (GM) and Spotify (SPOT) will report the results before the market opens, while Qualcomm (QCOM) and PayPal (PYPL) are slated after the market closes .

6:01 pm ET Tuesday: Stock futures open after regular session downtrend

Stock futures rose slightly from the overnight session after a fall during the regular session on Tuesday. Here were the main moves in equity markets, such as 6:01 pm:

  • S&P 500 Futures (ES = F): 3,216.75, up 3.75 points or 0.12%

  • Dow Futures (YM = F): 26,305.00, up 8 points or 0.03%

  • Nasdaq Futures (NQ = F): 10,566.5, up 26.5 points or 0.25%

New York, New York – May 26: The New York Stock Exchange (NYSE) stands in Manhattan on the first day that traders are allowed to return to New York City on May 26, 2020, on the historic floor of the exchange. Whereas at this time only a small number of traders will be returning, who do that they have to check the temperature and wear face masks all the time while on the floor. The Dow gained 600 points in morning trading as investors continue to see economic activity in the US (photo by Spencer Platt / Getty)

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