Fed decision, private hiring, Match shares jump and more: Wednesday's 5 things to know
Traders will also be watching for the latest labor-related report as well as the earnings report that have shares on the move
Callie Cox: Market wants Federal Reserve to be in touch with reality
U.S. investment analyst at eToro provides insight on the Federal Reserve's tightening policy on 'Making Money.'
Here are the key events taking place on Wednesday that could impact trading.
FED MEETING: The central bank is widely expected to raise the Federal Funds rate by three-quarters of a percentage point to a range of 3.75%-4%, up from the current range of 3%-3.25%.
It would be the central bank’s fourth consecutive 75-basis point rate hike, following moves in September, July and June. Prior to June, the Fed hadn’t done a 75 bps rate increase since November 1994.
The Fed lifted the Funds rate by half a point in May and a quarter-point in March. Before that, the Funds rate had been in a 0%-0.25% range following two emergency rate cuts in March 2020 in response to the global pandemic:
FED LIKELY TO DELIVER ANOTHER HUGE INTEREST RATE HIKE AS HIGH INFLATION PERSISTS
US Federal Reserve Chairman Jerome Powell. (AL DRAGO/AFP via Getty Images | istock / Getty Images)
Wall Street is even more laser-focused on what Fed Chairman Jerome Powell could signal comes next in the central bank's inflation fight during his 2:30 p.m. ET press conference Wednesday.
PRIVATE HIRING: The first of this week's labor-related reports will be released by the payroll processing firm ADP.
The National Employment report for October anticipates adding 195,000 private-sector jobs, down from 208,000 new jobs in September, which was slightly better than the estimate. That 195,000 forecast is in line with the 200,000 nonfarm jobs that the Labor Department is expected to say the economy added in October on Friday morning.
JOB OPENINGS UNEXPECTEDLY SURGE IN SEPTEMBER DESPITE FED EFFORTS TO COOL LABOR MARKET
MATCH GROUP: Shares rose 16% in extended trading after the parent company of dating apps Tinder and Hinge beat estimates for third-quarter revenue as more paying users, undeterred by decades-high inflation, signed up on its dating apps.
Match Group logo and their app brands are seen in this illustration. (REUTERS/Dado Ruvic/Illustration / Reuters Photos)
The company's revenue rose 1% to $810 million in the three months ending in September. Analysts on average had expected about $793 million, according to Refinitiv data.
Paying users for Tinder rose 7%. The app's total revenue grew 6%.
AIRBNB: Shares fell 5% in extended trading after the company forecast fourth-quarter revenue below market estimate, saying a strong U.S. dollar had started to pressure its business and that bookings would moderate after a bumper third quarter.
AIRBNB POSTS $1.2 BILLION PROFIT IN 3Q AS REVENUE JUMPS 29%
The vacation rental firm expects fourth-quarter revenue between $1.80 billion and $1.88 billion, the midpoint of which missed analysts' expectations of $1.85 billion, according to Refinitiv IBES.
The Airbnb app seen displayed on a smartphone screen with the Airbnb website displayed on a laptop in the background. (Thiago Prudencio/SOPA Images/LightRocket via Getty Images / Getty Images)
Net profit rose 45.6% to $1.21 billion, or $1.79 per share, while revenue increased 28.9% to $2.88 billion, beating estimates of $2.84 billion.
EARNINGS AGENDA: CVS Health, IHOP parent Dine Brands Global, Estée Lauder, Ferrari, Humana, Paramount Global, Tupperware and YUM! Brands will take the earnings spotlight before the market opens on Wednesday.
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Albemarle, Allegiant Travel, Allstate, eBay, Etsy, Hostess Brands, MetLife, MGM Resorts, Qualcomm, Red Robin Gourmet Burgers, Robinhood Markets, Roku, Sturm Ruger, Vimeo and Zillow Group will be on deck after the bell.