[Platinum Insights] (7.26.23)

Good morning. 

Nasdaq futures crept lower on Wednesday as investors assessed results from Microsoft and Alphabet, with markets also cautious ahead of a Federal Reserve rate hike that could push borrowing costs to their highest since the global financial crisis. 

The Fed is due to announce its monetary policy decision at 2 p.m. EDT through a post-meeting policy statement. Powell will host a presser at 2:30 p.m. EDT to explain the decision and offer insights into the future rate trajectory. 

Alphabet outshone Microsoft as the latest two of the tech giants reported earnings overnight, with another regional bank merger exciting financial stocks. Meta Platforms is up next after Wednesday’s closing bell and its share rose 2%. Amazon lost 2% on reports the Federal Trade Commission is finalizing an antitrust lawsuit against the firm. 

Shares in PacWest rose nearly 38% in premarket trading after news that smaller rival Bank of California, which rose 14%, had agreed to buy the lender for $1.1 billion. 

Coca-Cola Co raised its annual revenue and profit forecasts on Wednesday, betting on higher pricing and resilient demand for its sodas, especially its namesake drink and Sprite. 

Check Point Software Technologies on Wednesday reported a higher-than-expected profit for the second quarter and said it was stepping up the use of artificial intelligence (AI) to protect against a growing number of AI-related cyber-attacks. 

WTI crude futures fell below $79 per barrel. Gold steadied above $1,960 an ounce while the yield on the US 10-year Treasury note topped 3.9%. Overall, the stock market is expected to remain volatile in the near term as investors continue to assess the risks to the economy. 

Have a great day!