Stock Market Futures Dip As Investors Look Ahead To Key Inflation Data
Stock market futures are taking a breather early on Wednesday morning this week. After an extended rally in the stock market so far in November, the move is not too surprising. Of course, another key factor weighing in on investors today would be the U.S. Bureau of Labor Statistics’ Consumer Price Index (CPI) report. By current projections, we could be looking at a 0.6% rise in the CPI for October which translates to a year-over-year rise of almost 6%. Seeing as this would be the highest jump in 30 years, investor concerns are not unwarranted.
BMO Wealth Management’s chief investment strategist Yung-Yu Ma recently shed some light on the current situation. He said, “That’s going to be one of the big things going forward, to see whether or not that consumer sentiment can bounce back, whether consumers will be resilient in the face of these price pressures, or whether they’ll start to pull back a bit and decide they’re going to hold off on spending and wait to see when prices come down or at least stabilize before they spend more in the new year.” While investors consider all of this, there is also plenty of stock market news to consider today. As of 6:43 a.m. ET, the Dow, S&P 500, and Nasdaq futures are trading lower by 0.24%, 0.33%, and0.54% respectively.
Robinhood Crypto Wallet Waitlist Soars Alongside Bitcoin Price Surge
Robinhood (NASDAQ: HOOD) continues to see strong interest in its upcoming crypto wallet offerings. Since announcing plans for the service back in September, the company has amassed a waitlist of over 1.6 million investors.
For the uninitiated, the company’s crypto wallet serves to enable retail investors looking to get into the crypto trade. Ideally, it aims to do so by facilitating low-cost and efficient crypto transactions in-app. On top of that, Robinhood also notes that its new service comes with a wide array of security features. This includes but is not limited to identity, multi-factor, email, and phone verification measures.
By and large, the current focus on Robinhood’s crypto offerings is not surprising. Given the broad-based momentum in the wider blockchain tech industry this year, this is understandable. From NFTs raking in millions in profits to Bitcoin reaching record highs, retail investors have plenty to consider when looking at the industry. Accordingly, Robinhood seems to be looking to provide a highly accessible entry point for said investors. According to Robinhood’s Crypto COO Christine Brown, the feature is currently in its alpha phase with security standards being a top priority. With Robinhood appealing to the latest trends in the stock market today, HOOD stock could be gaining traction.
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Merck Sees $1 Billion COVID Pill Order From U.S. Government
On the pandemic front, Merck (NYSE: MRK) appears to be making headway with its COVID-19 antiviral pill, molnupiravir. As of yesterday, the U.S. government is reportedly ordering another $1 billion worth of the company’s pills. All in all, it brings the order up to a whopping 3.1 million courses of treatment totaling $2.2 billion. Naturally, this could put MRK stock on investors’ radars given the rising need for active treatments for severe COVID-19 cases. According to Merck, clinical testing suggests that the pill could half the chances of dying or hospitalization due to severe COVID in at-risk groups.
Not to mention, the overall ease of logistics and administration of molnupiravir would make it a likely choice for national distribution. In general, Frank Clyburn, president of Merck’s human health business, said, “Molnupiravir, if authorized, will be among the vaccines and medicines available to fight COVID-19 as part of our collective efforts to bring this pandemic to an end.”
By Merck’s current estimates, it is looking to produce 10 million courses of the treatment this year, with plans to double this figures in 2022. This alongside Pfizer’s (NYSE: PFE) ongoing work with a similar pill continues to highlight the relevance of the biotech industry today.
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Disney’s Earnings On Tap After The Closing Bell
Disney (NYSE: DIS) is among the notable names set to report earnings after today’s closing bell. From its explosively popular video streaming service, Disney+ to the company’s reopening tourist attractions, Disney brings plenty to the table now. Sure, some would argue that Disney+’s subscriber growth figures are slowing down now. Given that more parts of the world are reopening, this is understandable.
Additionally, year-over-year comparisons would also be against a time where consumer demand for streaming services was at an all-time high. Regardless, as Disney looks to navigate the current market with its extensive entertainment portfolio, investors are likely watching DIS stock.
As it stands, Wall Street currently expects Disney to report an earnings per share of 44 cents on revenue of $18.8 billion for the quarter. Notably, this would mark year-over-year gains of about 231% and 27% respectively. For investors, the key figures to note will likely be Disney’s streaming membership growth alongside its parks, experience, and products revenue. This could be the case with the overarching trajectory of the two seemingly meeting in the middle amidst shifting consumer trends. Regardless of whether you are betting on cord-cutting trends or the reopening of Disney’s gates, one thing remains. That is, DIS stock could arguably be getting a lot of attention in the stock market today.
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Notable Earnings In Focus In The Stock Market Today
Topping off all of that, we also have a solid line-up of companies reporting earnings today. In the pre-market hours, Fiverr (NYSE: FVRR), Wendy’s (NASDAQ: WEN), Energizer (NYSE: ENR), Shift4 (NYSE: FOUR), and Monday.com (NASDAQ: MNDY) are posting earnings.
Alternatively, for those eyeing the post-market, there are plenty of consumer-focused names reporting as well. This ranges from fintechs like SoFi (NASDAQ: SOFI) and Affirm (NASDAQ: AFRM) to real estate firms like Opendoor (NASDAQ: OPEN). Additionally, ContextLogic (NASDAQ: WISH), Beyond Meat (NASDAQ: BYND), and Tattooed Chef (NASDAQ: TTCF) are also on tap. Overall, the stock market today remains active as ever with inflation data and more hot earnings rolling in.
