Stock futures rocket higher
U.S. stock futures are trading sharply higher Tuesday morning, as market participants hope to put their recent woes behind after the Dow and Nasdaq Composite finished deep in red on Monday, weighed by the financial troubles of China property giant Evergrande (OTC: EGRNY).
As 5:20 a.m. ET, Dow futures rallied 308 points, or 0.91% to 34,147. S&P 500 gained 35 points, or 0.8% to 4,383.25 while the tech-heavy Nasdaq 100 futures were indicated 105.25 points, or 0.7% to 15,114.75.
On Monday, the Dow lost 614.41 points, or 1.78%, to close near 33,970.47 as fears about spillover from the possible collapse of Evergrande spooked traders.
The Nasdaq Composite shed 330.06 points, or 2.19%, to end at 14,713.90 while the S&P 500 dropped 75.26 points, or 1.7%, to close at 4,357.73.
Fed kicks off its 2-day meeting
The U.S. Federal Reserve begins its two-day Federal Open Market Committee (FOMC) meeting later today, which is a primary focal point for traders and investors.
All eyes are on the Fed as Wall Street awaits the central bank’s decision on the timing of its plan to eventually taper asset purchases.
While Fed chair Jerome Powell and his colleagues have signaled that they will start to slow down the central bank’s pace of asset purchases before year-end, there is still a lot of debate about the timing.
Some analysts think the central bank might wait a bit longer before pulling away its huge pandemic-era stimulus program, after the August jobs report showed a big slowdown in the U.S. labor market.
Uber shares surge on updated revenue guidance
Shares in Uber Technologies (NYSE: UBER) soared in the premarket trading session Tuesday after the company raised its third-quarter revenue outlook on the back of “strong improvements” in its mobility and delivery segments.
In a filing with the U.S. Securities and Exchange Commission (SEC), Uber said it expects to report gross bookings of between $22.8 billion and $23.2 billion for the current quarter from its previous target of $22 billion to $24 billion.
The ride-hailing giant also expects an adjusted profit before interest, taxes, depreciation and other costs between a loss of $25 million or a profit of $25 million in the quarter ending Sept. 30.
“With positive adjusted ebitda in July and August, we believe Uber is now tracking towards adjusted ebitda break-even in Q3, well ahead of our prior guidance,” Chief Financial Officer Nelson Chai said in the filing.
As of writing, Uber stock was marked $2.21, or 5.55% to $42.00 per share.