5 things to know before the stock exchange opens on Wednesday 26 January

Here are the key news, trends and analyzes that investors need to start their trading day:

Stocks are popping up as Wall Street’s wild volatility continues

Trading on the floor of the NYSE, January 25, 2022.

Source: NYSE

Dow futures rose more than 400 points, or 1%, on Wednesday as Wall Street waits to hear from the Federal Reserve this afternoon about its tightening plans following its two-day January meeting. Dow stock Microsoft’s over 4% pre-market rise on strong earnings helped boost the overall sentiment as a recent stretch of volatility continued. Futures on the S&P 500 and Nasdaq rose by approx. 1.5% and more than 2%.

  • The Dow Jones Industrial Average closed modestly lower on Tuesday after another volatile session, which saw intraday fluctuations from a fall of over 800 points to a rise of more than 220 points. The S&P 500 and Nasdaq closed on Tuesday with more than 1% and over 2%. Nasdaq sank deeper into a correction.

2. The Fed expected to signal interest rate hikes in March, further tightening policy

Sealed by the US Federal Reserve Board of Governors across the street from the Marriner S. Eccles Federal Reserve building in Washington, DC, USA, Sunday, December 19, 2021.

Samuel Corum | Bloomberg | Getty Images

The recently moderated 30-year government bond yields fell to around 1.78% early Wednesday. Last week, the benchmark rate peaked at 1.9% to highs back to January 2020. Concerns about rising inflation, and how the Fed will fight it further, will be at the center of investors’ consciousness when the central bank announces its policy statement at 1 p.m. ONE. Fed Chairman Jerome Powell will hold his press conference after the meeting at. 14:30 ET. Fed officials are expected to say they are ready to raise interest rates from almost zero as soon as in March after the tapering of bond purchases ends. Four hikes have been seen this year.

3. Boeing takes $ 3.5 billion. AT&T sees Covid-powered HBO Max boost

An American Airlines Boeing 787-9 Dreamliner is approaching landing at Miami International Airport on December 10, 2021 in Miami, Florida.

Joe Raedle | Getty Images

Boeing took a $ 3.5 billion tax before tax on its 787 Dreamliners, after production problems prevented the company from delivering the planes to airlines for most of the past 15 months. Before the clock, Boeing also said it generated positive cash flows in the fourth quarter and reached that milestone earlier than expected. It was driven by a jump in 737 Max deliveries last year after regulators lifted the ban on jets after two fatalities. The Dow stock added more than 2% in the pre-market. Boeing reported a much larger loss than expected in Q4 and missed revenue.

Signage for AT&T Inc. The WarnerMedia HBO Max streaming service will appear on a smartphone in an arranged photo taken in Brooklyn Borough, New York, USA, on Thursday, May 28, 2020.

Gabby Jones | Bloomberg | Getty Images

AT&T on Wednesday morning beat estimates for fourth-quarter adjusted earnings and revenue, boosted by strong growth from Warner Media and its streaming platform HBO Max. The stock above rose 2% in the premarket. The Covid pandemic-triggered shifts to work, study and play online have also helped the company maintain a strong demand for its wireless services. AT&T hopes to close its deal to merge Warner Media and Discovery into an independent company by mid-2022.

4. Microsoft turns on earnings and revenue, delivering optimistic forecasts

Visitor Center at Microsoft Headquarters Campus in Redmond, Wash.

Stephen Brashear | Getty Images News | Getty Images

Tesla and Dow shares Intel leads the quarterly reports scheduled for release after the clock. Late Tuesday it was Microsoft’s turn. The technology giant announced financial earnings and revenue in the second quarter, beating the estimates. Microsoft also provided an optimistic forecast for the current quarter as revenue from cloud services continues to grow strongly. The gaming component of Microsoft became more relevant to investors this month as the company announced plans to buy Call of Duty maker Activision Blizzard for $ 68.7 billion. The largest deal in Microsoft’s 46-year history is expected to close in fiscal year 2023.

5. Biden must personally host White House executives to promote maintained BBB

US President Joe Biden (R) comments with Intel CEO Patrick Gelsinger as he talks about the ongoing supply chain problems in the South Court Auditorium at the Eisenhower Executive Office Building on January 21, 2022 in Washington, DC.

Chip Somodevilla | Getty Images

President Joe Biden will meet in person on Wednesday with the CEOs of 10 large corporations to discuss the potential benefits to business of his Build Back Better Act, the bill on the social safety net that passed Parliament last year but stalled in the Senate. All executives at the meeting support the adoption of the Build Back Better Act, according to a White House official who on Tuesday requested anonymity to preview the event, which was still being finalized. Among the CEOs expected to attend are General Motors ‘Mary Barra, Ford’s Jim Farley, Salesforces’ Marc Benioff and HP’s Enrique Lores.

– Reuters contributed to this report. Follow all the market action like a professional CNBC Pro. Get the latest news about the pandemic CNBC’s coverage of coronavirus.

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