1. – Stock futures move ahead of Fed Announcement
Stock futures rose on Wednesday as investors awaited the announcement of the Federal Reserve’s policy.
Contracts related to the Dow Jones Industrial Average gained 123 points, S&P 500 futures 16 points and Nasdaq futures 47 points.
The stock gained momentum on Tuesday and the S&P 500 held high for the third consecutive season as Tech shares led the charge. The Nasdaq, for a fair number of the largest US tech stocks, rose 1.2%.
The Federal Reserve is expected to keep rates near zero where it initially lowered the coronavirus virus in March, further confirming its new, more relaxed stance on inflation.
Federal Reserve Chairman Jerome Powell said that in August the central bank would keep interest rates low even if inflation rose above its target level.
The Fed will announce its decision on interest rates at 2 pm ET, followed by a press conference by Powell.
Wednesday’s economic calendar in the US also includes MBA mortgage applications for the week. September 11 ended at 7 am, retail sales for August at 8:30 am and oil inventory for the week ended September 11 at 10:30 am.
2. – validated as $ 33.3 billion above snowflake IPO prices
The shares of Snowflake, a cloud storage and computing company’s initial public offering, were higher than the already inflated threshold, with the company valued at $ 33.3 billion.
According to reports, Snowflake will sell 28 million shares for $ 120 each. The company will raise about $ 3.4 billion in offers.
The stock will make its debut on the New York Stock Exchange on Wednesday under the symbol “Stock”.
Jim Cramer of IPC said the IPO could be “the biggest hit of the year”.
Why Jim Kramer is considering buying Action Alert Plus Snowflake
The price of the offer marks the second increase since Snowflake’s IPO filing. It originally set a midpoint range of $ 80 per share, but raised it to a midpoint of $ 105 in a new filing on Monday.
The increased prices suggest higher demand for snowflake offerings.
Sales force (CRM) – Get Report And Berkshire Hathaway (BRK.A) – Get Report Last week the tech opted to buy several million shares to show confidence for the company.
Snowflake’s financial disclosures show higher sales growth: Revenue increased from $ 96.7 million to $ 264.7 million as of January 31, 2020, a year-over-year increase of 178%.
3. – FTC prepares potential antitrust suits against Facebook
Facebook (American Plan) – Get Report Premarket trading declined on Wednesday, stating that the Federal Trade Commission was preparing a case of possible antitrust against the social media giant.
Allegations could be made within the next few months, The Wall Street Journal reported.
The Journal reported that the FTC has spent more than a year investigating Facebook on the Antitrust Ground, but no final decision has been made on whether to sue the company. The Facebook investigation is part of a broader investigation into collections by market-leading Internet companies and other state and federal offices launched by the FTC. .
Sources told the Journal that the FTC interviewed Facebook CEO Mark Zuckerberg during the investigation, and that charges could be filed by the end of this year. The lawsuit must pass with the FTC’s five-member commission, which will vote on whether to file charges or not.
Past reports suggested investigators were honoring small apps that were considered a threat to the social media giant, copying, or acquiring Facebook’s long track record.
The stock fell 1.48% to $ 268.40 in prepaid trading.
4. – Trump says closer to a decision on Oracle-TikTok Alliance
President Donald Trump said his staff was “very close to a deal” for Oracle’s approval (Orcl) – Get Report The tie-up with China-based video sharing app TikTok following a security review.
The president said he had a “high regard” for Oracle President Larry Ellison.
According to The Wall Street Journal, China’s ByteDance will hold a majority ownership stake in Tickcock’s app, while Oracle will serve as Tickcock’s American technology partner.
Tiktok’s global business will also become a company based in the US to become a unit of ByteDance, a person familiar with the deal told the Journal, in which Oracle holds a minority stake in the company.
The Committee on Foreign Investment in the US, known as Cfius, reviewed the deal Tuesday afternoon but did not immediately announce a recommendation. The settlement has a Sunday deadline.
5. – FedEx Smash Earnings Expectations
Fedex (FDX) – Get Report Prepaid trading rose sharply on Wednesday, up 9.57% to $ 259.33, after the package-delivery service reported earnings and sales for its fiscal first quarter, dipping analysts’ expectations.
For the quarter ended August 31, FedEx reported adjusted earnings of $ 4.87, higher than expected at $ 2.70. Revenue rose 14% to $ 19.3 billion and topped the forecast of $ 17.55 billion.
“Our earnings growth underscores the importance of our business initiatives and investments over the past several years,” Frederick W. Smith, a CEO, said in a statement, and in many ways, the world accelerated our strategies to meet is.
FedEx said its strong first quarter stemmed from international growth and volume growth in US domestic residential package services. FedEx improved yields in its ground and freight operations during the quarter.
FedEx did not forecast earnings for FY 2021. But it raised its capital-expenditure forecast for the year from $ 200 million to $ 5.1 billion driven by additional capacity initiatives.