FOMC minutes in focus
U.S. stocks markets were set for a mixed open on Wednesday as traders ahead of the latest set of minutes from the Federal Reserve’s interest-rate committee.
At the July 27-28 meeting, the Fed kept interest rates unchanged near zero and reiterated that it would continue to purchase bonds at a rate of $120 billion a month.
Its policy statement also added new language that reinforced expectations that the central bank could start ‘tapering’ in the fourth quarter. Wall Street will be closely watching the minutes to see whether this was a consensus view.
Since the conclusion of the meeting, there has been a very strong monthly jobs report and with employment an important benchmark for the central bank, any sign that tapering may start earlier than expected will be seized.
As of 5:40 a.m. ET, futures for the blue-chip Dow were indicated 75 points, or 0.21% lower to 35,184. S&P 500 futures lost 4 points, or 0.09% to 4,439.50 while the tech-heavy Nasdaq 100 futures were flat.
NVidia, Robinhood, Target earnings on tap
Besides keeping an eye on the Fed, traders are looking ahead to corporate earnings reports from some notable names today.
Target (NYSE: TGT) is seen reporting second-quarter earnings of $3.49 per share on revenue of $25.08 billion before the opening bell.
Chipmaker NVidia (NASDAQ: NVDA) is expected to come out with second-quarter earnings of $1.02 per share on revenue of $6.33 billion after the market close.
Analysts expect Robinhood (NASDAQ: HOOD) to report adjusted earnings of 15 cents per share, on revenue of $521.8 million after the closing bell.
Other key earnings to watch today include Lowe’s (NYSE: LOW), Victoria’s Secret (NYSE: VSCO), Cisco Systems (NASDAQ: CSCO), and Red Robin Gourmet Burgers (NASDAQ: RRGB).
Tilray stock charges up 6% acquiring majority stake in MedMen Enterprises
Shares of Tilray (NASDAQ: TLRY) soared 6% in the pre-market trading session Wednesday after the company disclosed it has acquired a majority of the debt that California-based MedMen Enterprises (OTCQB: MMNFF) owes to certain funds.
Tilray bought nearly $166 million in convertible secured notes and warrants, a move that could give the cannabis giant a foothold in the U.S. if lawmakers legalize cannabis at the federal level.
“The investment we are announcing in MedMen securities today, one of the most recognized brands in the $80 billion U.S. cannabis market, is a critical step towards delivering on our objective as we work to enable Tilray to lead the U.S. market when legalization allows,” Tilray said in a press release quoting CEO Irwin Simon.
At the time of writing, Tilray stock was up 81 cents, or 6.17% to $13.93 per share.
