US pre-open: Stocks seen muted after record gains
By Michele Maatouk
Date: Friday 22 Mar 2024
(Sharecast News) - US stocks looked set for a muted open on Friday following record highs a day earlier as rate-cut hopes buoyed sentiment.
At 1135 GMT, Dow Jones Industrial Average and S&P 500 futures were up 0.1%, while Nasdaq futures were flat.
Neil Wilson, chief market analyst at Markets.com, said: "Equity markets have roared higher after the Federal Reserve signalled it's not worried about sticky core inflation and still plans to cut three times this year.
"Even this, it should be noted, represents far fewer cuts than the market had anticipated at the start of the year. Its ability to digest such a change in rates futures is indicative of the bullishness, and the fact that an awful lot of money has been printed and will be printed. Central banks are keen to top up the punchbowl; if the last mile on inflation is so hard, why tire yourself out needlessly?"
In corporate news, FedEx surged in pre-market trade after the delivery and logistics giant lifted its 2024 guidance and unveiled plans to buy back $5bn of shares following a better-than-expected third quarter.
Lululemon was under the cosh, however, after the athletic clothing retailer's guidance fell short of expectations.
Nike was also in the red ahead of the open after warning that sales will take a hit this year as it works to realign merchandise to better match what shoppers are after.
Tesla was also set for losses following a Bloomberg report it has cut production at its plant in China amid sluggish growth in electric vehicle sales and intense competition in the world's biggest auto market.
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