FedEx lowers forecast amid labor concerns
The Dow Jones Industrial Average futures rose 196 points, or 0.58%, while the S&P 500 futures and Nasdaq 100 futures rose 0.52% and 0.3%, respectively.
Chinese real estate developer Evergrande negotiated a deal to settle interest payments, allaying contagion concerns. Also on Wednesday, the People’s Bank of China injected 90 billion Chinese yuan into the banking system in a show of reassurance.
Meanwhile, the Federal Reserve will announce its latest policy decision on Wednesday afternoon with investors looking for clues about when the central bank may begin its asset purchases.
Fed Chairman Jerome Powell said at a Jackson Hole symposium last month that any diluted announcement is not a “direct indication with regard to the timing of interest rate liftoff.”
Among stocks, FedEx Corp posted a 7% decline in quarterly profit and cut its full-year earnings forecast because of an inability to find workers ahead of the crucial holiday season.
General Mills Inc. beat both top and bottom lines and directed organic net sales at the high end of its previous range.
Adobe Inc. announced record quarterly revenue and issued better-than-expected earnings guidance for the current quarter.
Stitch Fix Inc. posted a surprise profit in the form of the company’s new direct purchase option as an alternative to its monthly subscription service, prompting a boost.
Elsewhere, Marin Software Inc. The company’s shares soared when the company entered into a revenue sharing agreement with Google to develop its enterprise technology platform and software products.
In commodities, West Texas Intermediate crude rose $1.15 to $71.64 an ounce and gold by $3.50 to $1,774.60 an ounce.
Foreign markets remained mostly higher.
Britain’s FTSE 100 rose 1.15%, France’s CAC 40 by 1.1% and Germany’s DAX 30 rose 0.59%.
In Asia, China’s Shanghai Composite Index jumped 0.4%, while Japan’s Nikkei 225 lost 0.67%. Hong Kong’s Hang Seng Index closed on a holiday.