Dow futures achieve modestly after the three main transferring averages notched a second day of losses

European markets mixed as cautious sentiment persists; Avast up 42%

European stocks were mixed on Wednesday, continuing the cautious regional trend this week.

The pan-European Stoxx 600 slipped 0.2% in early trade, with autos falling 1.5% while tech stocks rose 1.2%.

It’s a busy day for earnings in Europe, with Commerzbank, SocGen, BMW, Banco BPM, Siemens Healthineers, Veolia and Wolters Kluwer among the companies reporting before the bell.

Shares in Czech cybersecurity firm Avast rose 42% after the UK competition regulator gave tentative approval to its $8.6 billion sale to US rival NortonLifeLock.

Focus on data, not what Fed spokesman says, says Art Hogan

Despite the “parade of Fed spokesmen,” investors shouldn’t focus on it, according to Art Hogan, chief markets strategist at B. Riley Financial.

“I think investors need to pay more attention to what the data is telling us than what any individual Fed spokesman, voter or not, has to say about what our expectations should be,” Hogan told the Squawk Box” by CNBC Asia.”

Still, he said Fed officials have been able to shift expectations around Fed policy.

St. Louis Federal Reserve Chairman James Bullard said Tuesday the central bank will need to maintain rate hikes and that the Fed’s interest rate will likely need to rise to 3.75% to 4% by the end of 2022. San Francisco Fed Chair Mary Daly said “our work is far from over” in fighting inflation, while Chicago Fed Chair Charles Evans said another big rate hike is possible, although he hopes it will be avoided can be.

After last week’s meeting, some expected the Fed to continue higher and hit 3.25% to 3.5% before pivoting in 2023, Hogan said.

“I think this week’s parade of Fed spokesmen did a pretty good job of taking that back and ditching those expectations,” he said.

— Abigail of

These stocks are poised for a comeback when inflation peaks, Jefferies says

A slowdown may be on the horizon and further earnings downgrades have been forecast. If inflation also peaks, as some analysts expect, that mix of factors will favor a stock class, says Jefferies.

Jefferies compiled a selection of such stocks for investors to buy based on a list of metrics, including strong profitability, reasonable valuations, and good cash flows. Pro subscribers can read the story here.

— Wheat Tan

PayPal rises on profit, share buyback announcement

PayPal shares are up more than 11% after the close of business. The payments company beat analysts’ earnings and revenue estimates for the second quarter and issued an upbeat full-year guidance. PayPal also announced a $15 billion share buyback program.

Stock buybacks offer companies a way to increase their earnings per share and increase the value of their shares, especially as the market across the board has suffered sharp falls this year. The company launched a $10 billion program four years ago.

Elliott Management said it had a $2 billion stake in the payments giant. PayPal announced that it has entered into an agreement to share information about value creation with the activist investor.

– Tanaya Macheel

Despite Fedspeak on fighting inflation, a “easing cycle” is emerging, says Leuthold’s Jim Paulsen

Jim Paulsen, Leuthold Group’s chief investment strategist, said that despite the Federal Reserve’s “continued lip service to fighting inflation” by tightening monetary policy, there are several factors that suggest the market is entering an “emerging easing cycle.” could.

Bond yields have achieved a sizeable rate cut, the dollar is finally rolling and junk spreads have narrowed, he said in a note to investors late Tuesday.

“The primary focus of the media, politicians and investors is the fight against inflation and how aggressively the Fed needs to continue raising rates,” Paulsen said. “With real economic growth already slowing to a crawl and mounting evidence that inflation is slowing, the case for further Fed tightening at its September meeting is quickly falling apart.”

“Investors should give due weight to economic policy leadership,” he added. “Tightening today means lower real and nominal growth tomorrow.”

– Tanaya Macheel

MatchGroup shares fall after hours

Shares in dating app operator Match Group plummeted as much as 23% after the company reported second-quarter revenue of $795 million, compared to FactSet’s estimate of $803.9 million. Match also issued weak guidance for its adjusted operating income and revenue for the current quarter.

– Tanaya Macheel

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