U.S. stock futures were trending higher on Wednesday as investors turned their attention to the Federal Reserve policy report scheduled for later in the day. The markets await any hints about the tightening of monetary policy by the central bank, which is under immense pressure with inflation rising at its fastest pace for 40 years.
The market has already priced in the first-rate hike in March, with three more expected before year-end. In addition to the FED uncertainty, growing tensions at the Ukrainian border with the buildup of Russian troops have added another layer of risk to the market.
Dow futures (DJIA) were up 0.81%, S&P futures (SPX) were up 1.14%, and Nasdaq futures (NDX) were up 1.79% at the time of writing.
Upcoming Earnings
Abbott Labs (ABT), Anthem (ANTM), and General Dynamics Corp. (GD) are scheduled to report their quarterly results before the market opens. Packaging (PKG), Whirlpool Corp. (WHR), and Accuray Incorporated (ARAY) will report after the market close.
Market News
In M&A news WeWork (WE) has reached an agreement to acquire Common Desk as it looks to strengthen its footprint in the flexible work space. The transaction, which is expected to close in March, aligns with its strategic growth plan and is expected to strengthen its value proposition.
Coca-Cola (KO) has teamed up with Molson Coors (TAP) to develop a new line of flavored alcoholic drinks. The new product, Simply Spiked, will be based on Coca-Cola’s Simply juice brand. Molson Coors is tasked with producing, distributing, and marketing the ready-to-drink beverage as Coca-Cola offers the beverage base.
Alphabet’s (GOOGL) YouTube plans to integrate non-fungible tokens features on its platform as a way of enhancing the connection between video creators and users. The unit’s Chief Executive Officer, Susan Wojcicki, says the new features will enhance innovation on the video platform while helping content creators make use of emerging technologies.
3M (MMM) delivered better-than-expected fourth-quarter results despite facing a challenging environment due to supply-chain disruptions. Revenue in the quarter rose 0.3% to $8.6 billion, exceeding consensus estimates of $8.58 billion. Meanwhile, quarterly earnings were down 4% year-over-year to $2.31 a share and topped consensus estimates of $2.02 a share.
Microsoft Corp. (MSFT) delivered better-than-expected Fiscal Q2 2022 results characterized by a strong showing in Cloud, Gaming, and Windows software. Adjusted earnings increased 22% year-over-year to $2.48 a share, easily beating consensus estimates of $2.31 a share. Revenue increased 20% year-over-year to $51.7 billion, beating analyst estimates of $50.88 billion. The company returned $10.9 billion to shareholders through dividends and buybacks during the quarter.
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