Wall Street is expecting to rise, with the Fed in mind.

VOT Research Desk

Nov1,2022

Market Analytics and Considerations

Investors were hoping that the Federal Reserve would tone down its aggressive approach to interest rate hikes so that U.S. stocks would open higher on Tuesday, beginning November on a positive note.

After all three major indexes posted solid monthly gains in October, supported by better-than-expected earnings and hopes of the U.S. central bank easing the pace of its monetary policy tightening, the market is now solely focused on the Fed’s two-day policy meeting.

The Federal Reserve is expected to raise interest rates by 75 basis points for the fourth time, according to traders, but they are keeping an eye out for signs that the rate could be reduced in December. It would be seen positively if the Fed stated that it thought recent events had demonstrated that the economy was slowing and that they were on the right track.

On Tuesday, the yield on the benchmark 10-year Treasury note decreased, assisting in the rise of megacap stocks like Amazon.com Inc. (NASDAQ: Alphabet (NASDAQ: AMZN) Microsoft Corporation and Google Inc. (NASDAQ: MSFT) prior to the market.

Investors have been forced to look to sectors like energy, which have performed much better this quarter, as a result of the megacap heavyweights’ gloomy earnings reports.

Manufacturing PMI is expected to fall to 50 in October from 50.9 in September, according to the Institute for Supply Management (ISM) survey, which is due at 10 a.m. ET.

“This would be another perusing that would demonstrate that the assembling side of the U.S. economy is presently in constriction or downturn stage,” said Stovall.

Dow e-minis were up 203 points, or 0.62 percent, at 7:53 a.m. Eastern Time (ET), S&P 500 e-minis were up 36.5 points, or 0.94 percent, and Nasdaq 100 e-minis were up 134.75 points, or 1.18 percent.

Uber Technologies, on the other hand (NYSE:UBER) gained 9.2% following the release of a positive outlook for fourth-quarter profits, which also boosted Lyft Inc (NASDAQ: DoorDash and LYFT).

Pfizer, Inc. PFE) increased 3.1% following the drug maker increase in full-year sales estimates for its COVID-19 vaccine. Eli Lilly (NYSE: Due to lowering its profit forecast, LLY) lost 1.1%.

Chinese stocks like JD, which trade on the NASDAQ: Alibaba and JD).com (NYSE: Pinduoduo and Group Holdings BABA (NASDAQ: PDD) increased between 5% and 8% in response to social media rumors that China was planning a March reopening from strict COVID-19 restrictions.

Abiomed, Inc. Pre market, ABMD) surged 52.2% following Johnson & Johnson (NYSE: JNJ) announced that it would acquire the manufacturer of heart pumps for $16.6 billion.

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