By Dhirendra Tripathi
Stocks sold off on Tuesday ahead of earnings reports from tech giants and the Federal Reserve’s next policy announcement, due out Wednesday afternoon.
The Nasdaq shed more than 1.4% as of the last half hour of trading, and the S&P 500 and Dow Jones Industrial Average were also lower.
It’s a reversal for stocks, which have been steadily climbing over the last few sessions on relatively positive earnings reports from big companies. But investors can’t shake inflation fears and are looking to the Fed for guidance on the direction of interest rates.
The Fed’s periodic two-day policy meeting began Tuesday and will conclude tomorrow, with an announcement at 2:00 PM ET (1800 GMT) and then a press conference with Fed Chair Jerome Powell after that.
Wall Street is watching to see if the Fed’s language shifts even ever so slightly on bond purchases or sustained price increases. Anecdotally, at least, prices for consumers at the grocery and clothing store have risen. On Tuesday, reports about a cold snap in Brazil affecting crops sent the price of coffee soaring to a six-year high.
In addition to the Fed announcements, a number of earnings reports are due out again on Wednesday. Here are three things that could affect markets tomorrow:
Boeing results
The aircraft maker Boeing Co (NYSE:BA) is expected to announce a loss per share of 81 cents in the second quarter on revenue of $16.72 billion, according to analysts tracked by Investing.com. Analysts will be listening for the company’s outlook on production.
Pharma giants
Bristol-Myers Squibb Company (NYSE:BMY) reports second-quarter earnings, which analysts estimate to be $1.89 a share on revenue revenue of $11.29 billion. Pfizer Inc (NYSE:PFE)’s second-quarter revenue is expected to be $18.62 billion and EPS to be 96 cents.
Fast food results
McDonald’s Corporation (NYSE:MCD), like other fast food chains, is benefitting from a surge in restaurant visits. Analysts tracked by Investing.com see the burger giant reporting an EPS of $2.11 and revenue of $5.58 billion for the second quarter.