Overnight Trading Overview:
Dow Jones futures experienced a slight decline overnight, along with S&P 500 and Nasdaq futures. This follows recent indications from the Federal Reserve that a rate cut in September is “likely.” Key earnings reports from Snowflake (SNOW) and Zoom Video (ZM) also influenced market sentiment.
Market Movements:
Dow Jones Futures: Fell 0.1% against fair value.
S&P 500 Futures: Decreased by 0.2%.
Nasdaq 100 Futures: Also dropped 0.2%.
The 10-year Treasury yield edged up a few basis points to 3.81%.
Federal Reserve Outlook:
The Fed’s minutes from the July 30-31 meeting revealed that a “vast majority” of policymakers believe it would be appropriate to ease monetary policy at the next meeting if economic data remains as expected. Markets are currently anticipating a quarter-point rate cut on September 18, with a potential for a 50 basis point reduction. By the end of the year, investors expect a total of 100 basis points in rate cuts.
Earnings Highlights:
Snowflake (SNOW): Despite reporting better-than-expected Q2 earnings per share (EPS) and announcing a buyback, SNOW stock fell in after-hours trading. The stock, which had recently risen from a record low on August 5, remains in a steep downtrend.
Zoom Video Communications (ZM): Shares rose modestly in extended trade after beating earnings expectations. ZM stock had reached a record low on August 12.
Urban Outfitters (URBN): The company reported earnings that exceeded estimates, but revenue met expectations and same-store sales fell short. URBN stock declined sharply overnight but had risen slightly earlier, staying above the 200-day moving average but below the 50-day.
Synopsys (SNPS): The chip design firm’s stock rose slightly in after-hours trading following earnings that surpassed expectations. SNPS stock, which had been trading between its 200-day and 50-day moving averages, has a double-bottom buy point at 624.80, according to MarketSurge.
Upcoming Reports:
Viking Holdings (VIK) is scheduled to report early Thursday. VIK stock is currently trading near the top of a short, V-shaped consolidation.
Note: Overnight movements in Dow futures and other indices may not necessarily reflect the performance of the markets in the next regular trading session.
