On Wednesday morning, stock futures were choppy as oil prices rose amid the continuing conflict between Russia and Ukraine.
Futures on the Dow Jones Industrial Average were up 146 points, or 0.43 percent, at around 4:50 a.m. ET. Futures on the S&P 500 and Nasdaq 100 rose 0.39 percent and 0.46 percent, respectively. All three futures contracts had previously traded in the red.
The declines in futures occurred as oil prices continued to rise. Both US crude and international benchmark Brent crude futures gained more than 5%.
Several stocks rose in extended trading as a result of earnings. Due to solid gains, Nordstrom increased by nearly 35%, while SoFi increased by approximately 18%.
The Dow fell 597 points, or 1.76 percent, in regular trading. The S&P 500 lost 1.55 percent, while the Nasdaq Composite dropped 1.59 percent.
On Tuesday, energy stocks were a bright spot in the market, while bank stocks were dragged down by a sharp drop in Treasury yields, indicating a rush into safe-haven bonds amid stock market turmoil.
Several times during Tuesday’s session, the benchmark 10-year note fell below 1.7 percent.
On Wednesday, Fed Chair Jerome Powell will testify before Congress to provide his semiannual monetary policy update. With concerns about Russia’s invasion of Ukraine causing financial turmoil, Wall Street has quietly reduced its expectations for Fed action.
Investors are also anticipating ADP employment data and mortgage application numbers, which are due out on Wednesday.
Investors are keeping a close eye on oil prices, which have the potential to drive inflation, choke the economy, and present difficulties for the Federal Reserve in determining policy.
On Tuesday evening, President Joe Biden will deliver his first State of the Union address. Investors may be looking for updates on his economic plan, but the global response to the Ukraine conflict is likely to take precedence.
The earnings season is still in full swing, with several tech companies set to report on Wednesday. Okta, Pure Storage, and C3 AI will release earnings after closing.
Stocks making the most significant moves
Target – The retailer’s stock rose 9.9 percent after the company reported 9 percent sales growth in the fiscal fourth quarter, despite supply chain pressures, and said it is poised to maintain that momentum. Target also forecasted revenue growth in the low to mid-single digits and adjusted earnings per share growth in the high single numbers for the coming year.
Kroger — Kroger shares increased 3.3 percent after Telsey upgraded the grocery store chain ahead of its earnings report. “We believe we have increased visibility and confidence in Kroger’s multiyear omnichannel growth runway,” said Telsey’s Joseph Feldman.
Workday — Workday shares rose 4.9 percent after beating on its quarterly earnings results’ top and bottom lines. The company also increased its guidance for the fiscal year 2023 subscription revenue to be in the $5.53 billion to $5.55 billion range, representing a 22 percent year-over-year increase.