© Stocksak. FILE PHOTO – A trader works at the New York Stock Exchange, (NYSE) in New York City. October 7, 2022. REUTERS/Brendan McDermid
(Stocksak – U.S. stock futures rose on Thursday amid growing optimism that the Federal Reserve might slow down its interest rate hikes to control inflation. Meta Platforms shares plunged after a grim forecast.
Meta, Facebook’s parent company, reported a decline in third-quarter profits and predicted a weak holiday quarter with much higher costs next year. This sent its shares down 19.7% and wiped out $67 billion of its market value.
This downbeat outlook is due to weak earnings from Google-parent Alphabet and Microsoft (NASDAQ;), which add to recent economic data suggesting a softening economy. It also raises hopes that the Federal Reserve will be less aggressive at its December policy meeting.
The Bank of Canada announced a smaller-than-expected rate hike on Wednesday, with investor focus on a decision from the European Central Bank later in the day.
Amazon.com Inc and Apple Inc (NASDAQ.) will release results later in today. Also, U.S. Gross Domestic Product data for the Third Quarter will be released which will give further clues about the outlook for monetary policies tightening.
The Commerce Department’s report is due at 8:30 a.m. ET is expected show that GDP growth likely rebounded at 2.4% per annum last quarter following two consecutive quarterly declines.
At 4:56 a.m. ET were up 160 points or 0.5% and up 12.25 points or 0.32% respectively. They were also up 1.75 points or 0.02%.
Twitter Inc (NYSE: ) rose 1.1% premarket on Tuesday, after Elon Musk, billionaire, visited the headquarters of the social networking company before a court-ordered deadline to complete his $44 billion acquisition deal.
Ford Motor (NYSE) Co fell 1.3% after the automaker reported a third quarter net loss.