Stock futures flat as Wall Street takes a breather after Dow rises 400 points

Bank of England on Thursday raise interest rates by half a percentage point, The increase is the sixth in a row and the first rise of this size since 1997, in an attempt to cool inflation.

UK inflation at 40 yearsAnd preparing to continue rising. The bank now expects headline inflation to peak around 13% in October, which means the rate hike will likely continue.

– Carmen Renick

Bernstein strategists led by Sarah McCarthy said they expect the market to fall again in the short term.

“While long-term sentiment indicators are bearish enough to take a positive outlook on stocks with a 12-month horizon, we believe in the short term the market is likely to decline again as we are at the start of a profit-cutting cycle so far we haven’t seen inflows yet,” they said in a note to clients on Thursday. Meaningful equity funds.”

These comments come as the market is enjoying a sharp recovery from its mid-June lows. Since then, the S&P 500 is up 14.25%.

US stock futures pointed to a silent open on Thursday, as the market took a breather after a rally in the previous session. Futures related to the Dow Jones Industrial Average rose less than 0.1%, along with futures contracts for the S&P 500 and Nasdaq 100.

–Fred Ambert

European stocks were quiet on Thursday as uncertainty returned after gains in the previous session.

pan europe Stokes 600 It was up 0.2% by mid-morning. Retail stocks were the best performers, up 2.2%, while telecoms companies fell 0.5%.

United kingdom FTSE withdrew before Bank of EnglandMonetary policy decision later on Thursday. It is widely expected that the central bank Raising interest rates by 50 basis pointsthe largest single increase since 1995.

Ali Baba It is due to report first-quarter financial earnings before the market opens and analysts expect the Chinese e-commerce giant to do so Having recorded its first ever drop in revenue.

Alibaba is expected to report 203.19 billion yuan ($30 billion) in revenue for the June quarter, down 1.2% from a year ago, according to consensus forecasts from Refinitiv.

Alibaba has faced a number of headwinds, from a tighter regulatory environment in China to the resurgence of Covid in the world’s second-largest economy leading to the shutdown of major cities. These factors have weighed on the Chinese economy, leading to a decline in advertising budgets and consumer spending, which is likely to affect Alibaba’s June quarter results.

However, analysts expect the company to return to growth in the coming quarters. Alibaba’s Hong Kong-listed shares rose more than 4% before earnings.

– Arjun Kharbal

CNBC’s Jim Cramer said: Now is the time to buy gold The signs are pointing higher, according to analysis by commodity trader Larry Williams.

The “mad moneyThe host explained Williams’ analysis by looking at the weekly movement of gold from 2014 and data on the status of small gold speculators from the Commitments of Traders Report from the Commodity Futures Trading Commission.

Gold prices usually peak shortly after petty speculators have surged on the precious metal, and bottom out when petty speculators are bearish, according to Williams.

“The graphs, as interpreted by legendary Larry Williams, indicate that the general public is giving up gold en masse and believes that this makes it the ideal entry time to make some buying,” Cramer said.

Abigail Ng, Crystal Hor

Stocks are volatile, and bonds have not done better for most of this year, with investment-grade US bonds lowering in 2022.

But analysts have been bullish lately on income investing as returns are starting to rise again.

Here are some of the ways the professionals suggest that investors can position their portfolios in order to diversify and protect against market volatility as well as seek higher returns as inflation continues to rise. Professional subscribers can read the story here.

– Weezin Tan

Shares of Fortinet fell more than 9% in extended trading after the cybersecurity company reported its quarterly results, which included free cash flow of $283.5 million, compared to FactSet’s estimate of $337.2 million. Service revenue also missed estimates.

Other cyber security stocks also declined after hours. CrowdStrike is down 1% and Palo Alto Networks is down more than 1%.

– Tanaya Michel

Owns Walmart I started laying off the company’s employees After about a week of the retail giant It lowered its earnings forecast He warned of a decline in consumer consumer spending due to inflation. The company described the layoffs as a way “to better position the company for a strong future,” in a statement to CNBC. Shares are down less than 1% after hours.

– Tanaya Michel

Shares in the luxury electric car maker Lucid Group 11.7% in extended trading after the company Reducing production targets for the whole year The second time to 6000. The original forecast was 20,000. The company also posted a quarterly loss of 33 cents a share.

– Tanaya Michel