Stocks On Defensive Ahead of Fed Minutes

Barry Adams
25 May, 2022
New York City

U.S. market indexes pointed lower after a day of volatile trading and traders await details of the latest Federal Reserve's policy meeting on May 4. 

Futures on the S&P 500 index declined 0.3% to 3,977.45 and the Nasdaq Composite fell 0.3% to 11,736.28.

At the last Fed policy meeting chaired by Jerome Powell the central bank lifted its key rate by 50 basis points and highlighted the urgency of taming elevated inflation. 

Markets have been volatile and accelerated the declines on the worries that the Fed may be out of policy tools in combating elevated energy prices and may lag in taming inflation for a long time to come. 

Crude oil futures for the front month delivery jumped $1.50 to $111.37 a barrel. 

The yield on 10-year Treasury notes declined to 2.73%. 

Earnings news dominated pre-market trading after retailers and home builders release earnings. 

Dick's Sporting Goods declined 13% to $62.21 after the retailer reported better-than-expected quarterly results and lower-than-expected fall in comparable sales. 

The company also lowered its annual outlook citing macro conditions and higher inflation. 

Urban Outfitters gained 1.4% to $18.99 after the apparel retailer said its revenues and earnings were hit by higher freight and raw materials costs. 

Net income plunged to $31.5 million or 33 cents a share from $53.5 million or 54 cents a share a year ago. 

Nordstrom, Inc gained 4% to $21.56 after the apparel retailer reported a surge in sales and also lifted its annual sales and profit outlook. 

Toll Brothers jumped 3% to $45.98 after the luxury home builder said in the latest quarter it completed 2,407 homes, an increase of 6%.

Sales increased 19% to $2.2 billion and net income rose to $220.6 million or $1.85 a share from $127.9 million or $1.01 share a year ago. 

Home sale gross margin in the quarter increased to 24.1% from 21.9% a year ago.