U.S. stock indexes opened lower and quickly fell more in the early trading. The labor department reported April unemployment rate was 3.6% and payrolls expanded 428,000. Asian markets fell after top Chinese leaders doubled down on zero-Covid policy indicating longer supply chain disruptions.
U.S. market indexes plunged at least 3.5% after investors reevaluated Fed comments and its plan to restore price stability. With the slow pace of tightening, interest rates are expected to lag inflation for many more months or quarters and nudge the economy in stagflation.
Shopify Inc reported quarterly revenues increased 22% but swung to net loss and guided lower revenue growth in the second-half. The company announced plans to acquire Deliverr for $1.2 billion.
SHOP
SHOP
Tripadvisor quarterly revenues surged and net loss shrank sharply as people begin to travel and dine outside.
TRIP
TRIP
Wayfair reported quarterly sales declined and a loss after fewer customers shopped on the online home furnishing platform.
W
W
Wayfair plunged after reporting a decline in sales and a quarterly loss. Shopify and Etsy fell after reporting slower growth. EPAM jumped on sales growth. Hain Celestial offered a weak sales outlook. Sprouts Farmers fell after estimating earnings and sales at the low end of previous guidance.
EPAM HAIN SHOP
EPAM HAIN SHOP
U.S. stocks erased most of the gains logged in the previous session after digesting comments from the Fed suggested its inability in controlling supply shocks, impacting energy prices, and supply disruptions. Despite record job openings, labor participation rate is not increasing.
The S&P 500 and the Nasdaq Composite index accelerated gains after the Fed Governor Powell said 75 basis points rate increase was not discussed in the policy meeting.
The Federal Reserve lifted its key rate by 50 basis points and announced a plan to shrink its portfolio of Treasurys and agency debts. The rate hike was the largest since May 2000.
U.S. stocks advanced and investors added positions ahead of the rate decision this afternoon. Investors are looking beyond a widely anticipated 50 basis points interest rate hike and hoping that the inflation has peaked.
CVS
CVS
Starbucks revenues increased 15% in the latest quarter driven by a stronger sales increase in the U.S. offset by sales decline in China, the second largest market for the coffee chain. Operating margins also declined on the rising wages and supply chain costs.
SBUX
SBUX