Dow Futures Lift Ahead of Fed Rate Decision

By Olivier Gray – traded higher in overnight trading as investors eyed new corporate earnings reports ahead of those from the Federal Reserve, with market participants widely expecting authorities to rise rates by half a percentage point.

At 6:50 p.m. ET (22:50 GMT) added 0.1%, gained 0.2% and rose 0.3%

In the extended deals, LYFT Inc (NASDAQ:) fell 26.2% after losses of 57 cents per share against expected losses of 10 cents on revenue of $875.6 million against the consensus estimate of 846 millions of dollars. The company also shared second-quarter forecasts that were lower than analysts’ estimates.

Uber Technologies Inc. (NYSE:) also fell 4.4% after Lyft the results.

Livent Corp. (NYSE:) gained 19.7% as the company’s first-quarter EPS was 28 cents vs. 13 cents expected, while revenue for the quarter was $143.5 million vs. consensus estimate of $139.65 million.

Infinera Corporation (NASDAQ:) fell 18.6% after losses per share of 7 cents, worse than analysts’ estimates of 4 cents, while revenue in the quarter was $338.9 million vs. consensus estimate of $361.74 million.

Airbnb Inc (NASDAQ:) jumped 6.7% in extended trading after the company beat the high and low, with losses per share of 3 cents vs. 25 cents expected on revenue of 1.51 billion vs. 1.45 billion expected. The company also released an upbeat outlook for the current period.

Advanced Micro Devices Inc (NASDAQ:) gained 6.8% following growth on the highs and lows. First-quarter EPS came in at $1.13 versus 91 cents expected, while revenue was $5.9 billion versus the consensus estimate of $5.52 billion. AMD posted 71% sales growth in the quarter and shared strong revenue guidance for the current quarter and year.

Starbucks Corporation (NASDAQ:) rose 5.1% after earnings per share of 59 cents, in line with expectations, while revenue was $7.64 billion versus $7.60 billion expected.

Match Group Inc (NASDAQ:) lost 6.1% despite higher-than-expected earnings per share and revenue. The company also noted that CEO Shar Dubey will step down on May 31 and Bernard Kim, president of Zynga, will take over.

Meanwhile, market participants are bracing for a hawkish Fed and the central bank is also expected to announce a plan to trim its balance sheet by about $9 trillion from $95 billion a month, starting in June. Investors are also eagerly awaiting further earnings reports from CVS Health Corp (NYSE:), Uber Technologies Inc (NYSE:) and Yum! brands inc. (NYSE:) Wednesday.

In regular trading on Tuesday, the rose 0.48% to 4,175.5, the lifted 67.29 points or 0.2% to close at 33,128.8 and the added 0.22% to 12,563. ,8.

In bond markets, Treasury yields eased to new 3-year highs at 2.979%.

On the data front, March rose 2.2%, better than expected while posting a new all-time high of 11.55 million.

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