May 30, 2024

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US futures paused ahead of the Fed and Amazon's earnings announcement as a 5-month winning streak came to an end

US futures paused ahead of the Fed and Amazon's earnings announcement as a 5-month winning streak came to an end

US stocks paused on Tuesday, as investors bided time before the Federal Reserve's interest rate decision, with earnings from Amazon ( AMZN ) appearing to test the odds of a further Big Tech-fueled rally.

S&P 500 (^GSPC) and tech-heavy Nasdaq 100 (^NDX) futures fell about 0.1% after closing with small gains. Dow Jones Industrial Average (^DJI) futures fluctuated below the flat line.

Stocks are on track to record their worst month of 2024, as a brutal expansion in mid-April means major indexes are poised to end the month with losses. But investors are looking forward to continuing progress in the recovery that prevailed over the past week.

So far, expectations for the Fed's next move have struggled to garner interest with better-than-expected quarterly results, with surprises from the likes of Paramount (PARA) and Tesla (TSLA) playing their part.

Investors are bracing for policymakers to keep interest rates at historically high levels at the Federal Reserve's two-day meeting, scheduled to begin Tuesday. The likelihood of interest rate cuts has declined significantly since the beginning of the year, helping push up Treasury yields — a familiar systemic problem for stocks. The yield on the 10-year Treasury note (^TNX) held near six-month highs at around 4.63% early Tuesday.

Amazon's results after the bell will be closely watched after earnings from Microsoft (MSFT) and Alphabet (GOOG, GOOGL) raised hopes of a boost to the “Magnificent Seven” this season. So far, Big Tech's results have impressed Wall Street and revealed its impatience with big spending on artificial intelligence.

Highlights on the early earnings chart are Coca-Cola (KO) and McDonald's (MCD), with AMD (AMD) and Starbucks (SBUX) also appearing after the markets close.

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  • Here's another surprise from the restaurant's profits

    You don't see this often, but Restaurant Brands' Burger King (QSR) chain had a better quarter in sales than arch-rival McDonald's (MCD).

    Burger King this morning revealed a 3.9% increase in same-store sales in the first quarter, outpacing McDonald's' gain of 2.5%.

    Restaurant brands have been very aggressive in their marketing of BK this year, especially with the new (and cheap) snack packaging. So, BK may have regained market share among bargain-hunting consumers.

    See below what Restaurant Brands is doing with CEO Patrick Doyle and CEO Josh Kobza.

  • Quick Analysis: McDonald's joins comment on price hikes

    McDonald's (MCD) highlights “strategic” menu price increases in the US during the first quarter.

    It is not clear from the company Supplemental release If price increases affect store traffic.

    But the company's comparable sales in the US were up just 2.5%, so it's safe to conclude that the company has noticed some Roll back prices from diners.

    More on this quarter from Yahoo Finance Senior Correspondent Brooke DiPalma here.

  • Quick Analysis: Molson Coors is also claiming higher prices

    Similar to Coca-Cola ( KO ) this morning, beverage giant Molson Coors ( TAP ) had a strong quarter on the back of continued price increases.

    Molson Coors said prices rose 4.4% during the quarter, no small feat in the highly competitive beer industry.

    Interestingly, Coors Light's trading volume was up by double-digit percentages.

    You read that right…Coors Light.

  • Quick analysis: Coca-Cola earnings reveal 1 point on inflation

    We saw it with PepsiCo's (PEP) earnings last week, and we're seeing it again with Coca-Cola's (KO) results this morning: Big food players are still pushing for higher prices on consumers (memo to Fed) .

    Coca-Cola noted that “price/mix” in the first quarter rose 13%.

    Keep an eye on Yahoo Finance Senior Reporter Brooke DiPalma on our platform today — she'll be speaking with Coca-Cola CEO James Quincey for additional information on the results.