Stock Market Futures Inch Higher Ahead Of Upcoming Fed Interest Rate Hike
U.S. stock futures are cautiously rising today as investors keep a close eye on the Federal Reserve. This would be the case as central bank policymakers will be providing an update on their interest rate raising plans. After all, the Fed’s latest policy meeting is set to end today. The market appears to be predicting a 75 basis point rate increase. But one thing remains certain. Namely, volatility and uncertainty will remain key themes in the stock market moving forward.
Providing some commentary on all this is Paul Ashworth, the chief North America economist at Capital Economics. He writes, “The Fed’s previous plan to hike by 50bp [basis points] at the meetings in June and July and then revert to 25bp increases in the fall was always dependent on inflation showing signs of cooling.” Ashworth also notes, “Instead, the monthly gains in core CPI accelerated back to 0.6% in both April and May, suggesting that price pressures are broadening.” In fact, even producer prices continue to gain at near-record paces. Just yesterday, the Producer Price Index gained by 10.8% year-over-year. While considering all of this, here is how the major U.S. index futures are doing now. As of 6:15 a.m. ET, the Dow, S&P 500, and Nasdaq futures are rising by 0.41%, 0.57%, and 0.71% respectively.
Nio Gains Momentum Ahead Of Latest ES7 SUV Launch Event
Among the key names to look out for today could be Nio (NYSE: NIO). On the whole, this Chinese electric vehicle (EV) firm appears to be coming into focus ahead of its latest launch event. In detail, Nio is set to host its latest product launch event before today’s opening bell. Notably, a major highlight of the upcoming event would be the launch of Nio’s all-electric ES7 SUV. Because of all this, NIO stock saw gains of over 16% during intraday trading yesterday. Moreover, the company’s shares are currently extending these gains in today’s pre-market hours.
For those unaware, the ES7, according to official Chinese government filings, is a medium-large five-seat SUV. Also in the documents, it will come in five versions boasting varying full-charge ranges. This would include ranges of between 440km and 620km with the option for additional battery packs boasting a capacity of up to 100kWh. Also worth mentioning, the ES7 will also feature a swappable battery. Ideally, this could appeal to consumers looking to cut down their EV charge times significantly.
Furthermore, most would also be anticipating new updates regarding the 2022 models of Nio’s main EVs. Among the major cyclical refreshes would be its ES6, EC6, and ES8 models respectively. All in all, Nio continues to power forward even in the face of COVID-related lockdowns impacting production. With Nio set to launch one of its biggest events of the year, NIO stock could be worth considering today.
Moderna Two-Dose Vaccine Receives Recommendation From FDA Advisory Panel For Use In Children Ages 6 to 17
On the biotech front, Moderna (NASDAQ: MRNA) appears to be gaining attention in the stock market today. For the most part, this follows a new update on its two-dose Covid vaccine. As of yesterday, the U.S. Food and Drug Administration‘s (FDA) committee of independent immunization experts is recommending Moderna’s shot regimen for children between the ages of 6 to 17. Accordingly, this would be a positive development for the company. It follows the previous request for authorization from Moderna from over a year ago in early June 2021. Ideally, this will see a full authorization from the FDA later this week.
Getting into the specifics, the FDA committee unanimously voted to greenlight the shots. This would potentially provide younger demographics with better access to the vaccine in general. Not to mention, Moderna also remains hard at work, optimizing its Covid vaccine. Just last week, the company revealed positive clinical data regarding its Omicron-containing booster candidate. According to Moderna, the booster shot boasts a “superior antibody response” toward the fast-spreading variant. With Moderna seemingly firing on all cylinders, it would not surprise me to see investors eyeing MRNA stock now.
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Apple Scores 10-Year Streaming Deal With Major League Soccer
Apple (NASDAQ: AAPL) continues to take major strides across its portfolio this week. This ranges from its latest software and hardware upgrades to key updates on its services. Speaking of services, Apple’s push on the streaming front is becoming increasingly apparent now. As of yesterday, the company currently has a 10-year streaming deal with the Major League Soccer (MLS) association. Primarily, Apple’s streaming service, Apple TV+ would be the main division to benefit from this.
Through the current agreement, Apple TV+ will be the only platform where MLS fans can watch matches uninterrupted. According to the company, Apple TV+ subscribers will have access to select patches. Furthermore, Apple will be offering a separate MLS subscription package for fans eager to watch all the matches live. In the larger scheme of things, this would serve to further strengthen Apple’s push toward the sports streaming space. As such, AAPL stock could continue to receive attention in the stock market today as well.
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Trump-Backed Digital World Acquisitions Sees Turbulence As SEC Expands Probe Of Company And Musk Addresses Twitter Employees
In other news, shares of Donald Trump’s social media firm Digital World Acquisition (NASDAQ: DWAC) are experiencing volatility. Overall, this is likely a result of several key market headwinds weighing in on its growth prospects. To begin with, it is important to note that DWAC stock is essentially representative of Trump’s Truth Social (TS) platform. Because of this, mentions of Trump or other social media firms gaining ground on TS would impact the company’s shares.
In particular, the SEC is reportedly expanding its ongoing probe of DWAC now. According to an 8-K filing from DWAC, the SEC issued a new subpoena looking into the combination of Trump Media & Technology Group and DWAC. Besides, news of Tesla (NASDAQ: TSLA) CEO Elon Musk speaking to Twitter (NYSE: TWTR) employees would be among the major factors to consider. For some context, this would be the case as Musk has expressed interest in allowing Trump to rejoin Twitter following his ban last year. Safe to say, all this would put DWAC stock in the stock market headlines today.