By Scott Kanowsky and Jessica Bahia Melo
Investing.com – US stock futures were operating close to stability before the opening of the stock exchanges in New York this Tuesday, 7th, after a rise in the main American indices in the previous session, stimulated by hopes of a Federal Reserve cut ( ). Yesterday, the president of the Fed’s Richmond branch, Thomas Barkin, declared that borrowing costs are currently “tight” enough to contain high inflation.
In the corporate scenario, Walt Disney is preparing to release its first quarterly results since winning a fierce battle against activist investors.
In Brazil, the highlight is the profit of Itaú Unibanco (BVMF:).
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1. Interest Rates Are ‘Tight’ Enough to Cool Inflation – Fed’s Barkin
Interest rates in the US are at “restrictive” levels capable of moderating demand and controlling inflation, said Thomas Barkin, president of the Richmond Fed.
Speaking in South Carolina, Barkin was “optimistic” that current rates, between 5.25% and 5.50%, are adequate to reduce inflation to the Fed’s target.
He also expressed confidence that the economy is not overheating, one of the reasons the central bank decided not to cut rates earlier, contrary to initial expectations. In the event of a significant recession, Barkin highlighted that the Fed has sufficient resources to intervene effectively.
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However, he acknowledged that inflation remains a challenge in the Fed’s current monetary tightening cycle.
“The road to control is long,” admitted Barkin. “That doesn’t mean we won’t reach the goal, just that it will take longer.”
CHECK OUT: Investing.com economic calendar
2. Disney’s 2nd quarter results are optimistically expected
Walt Disney (NYSE:) is poised to reveal its second-quarter results before the market opens on Tuesday, weeks after triumphing in a dispute with activist investors.
In April, shareholders massively backed CEO Bob Iger and his turnaround plan, marking a setback for a group of major investors led by Trian Partners’ Nelson Peltz. Disney shares are up more than 28% in 2024, although they are still well below their peaks from three years ago.
Iger is expected to detail his future strategy, including plans to make the crucial streaming business profitable by the end of the year.
Analysts project an increase in subscribers to the Disney+, Hulu and ESPN+ platforms, and a reduction in operating losses in the direct consumption unit.
For the entire group, adjusted earnings per share and revenue are expected to come in at $1.10 and $22.1 billion, respectively.
U.S. stock futures were mixed on Tuesday as investors digested new inflation statements from Fed officials and awaited more quarterly results.
At 7:55 am, in Brasília, it registered an increase of 0.1%, remained stable and fell 0.1%.
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Wall Street’s main indices rose in the previous session, on hopes that the monthly report on the US labor market (payroll), weaker than expected, could lead the Fed to cut interest rates as early as September. Before the data, the market expected a cut only in November.
Chipmakers stood out, with arm Holdings (NASDAQ:) rising 5.2% ahead of releasing its fiscal fourth quarter results on May 8. Paramount Global (NASDAQ:) also advanced after ending exclusive negotiations with Skydance Media, leaving room to explore other offers.
The actions of Spirit Airlines (NYSE:), however, fell due to an unfavorable revenue outlook for the current quarter.
FOLLOW: American stock quotes
3. Apple develops AI chip for data centers
Apple Inc (NASDAQ:) is working on a new internal chip designed to run artificial intelligence programs in data centers, as reported by the Wall Street Journal. This project, internally dubbed ACDC (Apple Chips in Data Centers), marks a significant step forward in the company’s efforts to establish itself in the competitive AI sector.
Historically, Apple has been designing its own chips for iPhones and other devices for a decade, aiming to lessen its dependence on outside manufacturers like Intel (NASDAQ:).
The initiative comes amid speculation about how Apple plans to integrate AI into its range of products, especially considering that the company is somewhat behind its American competitors in launching AI technologies.
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4. Oil falling
Oil prices fell on Tuesday after Israeli attacks on Rafah, south of Gaza, raising uncertainty about a potential ceasefire in the region.
At 7:55 am, US oil futures () registered a drop of 0.33%, quoted at US$ 78.22 per barrel, while Brent () fell 0.36%, to US$ 83.03 per barrel.
On Monday, Hamas, a Palestinian militant group, accepted a ceasefire proposal in Gaza made by mediators. However, Israel did not accept the proposed terms, continuing negotiations for an agreement. The persistence of the conflict, which has lasted seven months, has supported oil prices, with fears that the continuation of the regional war could disrupt oil supplies from the Middle East.
Despite this, benchmark indices saw their biggest weekly falls in three months last week on concerns that higher interest rates for longer could slow economic growth in the US, the world’s biggest oil consumer.
CHECK OUT: Price quotes for the main commodities
5. Itaú Unibanco Profits
Itaú Unibanco reported a recurring net profit of R$9.8 billion in the first quarter of this year, an increase of 15.8% compared to the same period of the previous year and a recurring return on annualized average net equity (ROE) of 21 .9%.
According to the bank, among the factors that boosted the indicators were the increase in the financial margin with customers, given the positive effect of the growth of the credit portfolio and the greater margin with liabilities, in addition to the increase in revenue from services and insurance. The total credit portfolio grew by 2.8% compared to the first quarter of 2023.
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“Our results in the first quarter of 2024 remain consistent and in line with the guidance proposed for the year”, pointed out Alexsandro Broedel, CFO of Itaú Unibanco, in a note to the market.
At 7:55 am (Brasília time), the ETF EWZ (NYSE:) rose 0.03% in pre-market.
