U.S. futures hit pause on Fed, Amazon gains as five-month winning streak threatens to end

U.S. stocks were on pause Tuesday as investors marked the clock ahead of the Federal Reserve's interest rate decision and Amazon (AMZN) earnings looked set to test the potential for further gains from Big Tech. I fell into it.

Futures for the S&P 500 (^GSPC) and tech-heavy Nasdaq 100 (^NDX) fell about 0.1% after closing modestly higher. Dow Jones Industrial Average (^DJI) futures swung below the flatline.

The tough market in mid-April will see major indexes end the month in losses, and stocks will end the worst month of 2024. But investors are looking to continue to build on the recovery that took hold last week.

So far, there have been surprises from Paramount (PARA) and Tesla (TSLA), among others, with better-than-expected quarterly results and expectations for the Fed's next move.

Investors are bracing for policymakers to keep interest rates at historically high levels during the two-day Federal Reserve meeting starting Tuesday. Prospects for interest rate cuts have subsided dramatically since the start of the year, contributing to a rise in Treasury yields, a well-known systemic problem for stocks. The 10-year U.S. Treasury yield (^TNX) held steady at around 4.63% early Tuesday, its highest level in nearly six months.

Amazon's performance after the bell will be watched closely as Microsoft (MSFT) and Alphabet (GOOG, GOOGL)'s impressive profits have raised expectations for a boost from the “Magnificent Seven” this season. So far, Big Tech's achievements have impressed Wall Street and exposed its impatience with spending big on AI.

The highlights of early earnings are Coca-Cola (KO) and McDonald's (MCD), with AMD (AMD) and Starbucks (SBUX) also appearing after the market closes.

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Tuesday, April 30, 2024 4:50 a.m. (Pacific Daylight Time)

Another surprise from restaurant profits

You don't see it often, but Restaurant Brands' (QSR) Burger King chain outsold its biggest rival, McDonald's (MCD), by a quarter.

Burger King announced this morning that same-store sales increased 3.9% in the first quarter, outpacing McDonald's 2.5% increase.

Restaurant brands have been very aggressive in marketing BK this year, especially with their new (and cheaper) snack wraps. Therefore, BK may have regained market share among consumers looking for a bargain.

Learn more about what Restaurant Brands is up to with Chairman Patrick Doyle and CEO Josh Kobza below.
Tuesday, April 30, 2024 04:44 PDT

Quick analysis: McDonald's joins price hike commentary

McDonald's (MCD) highlighted “strategic” menu price increases in the U.S. in the first quarter.

The company's supplemental release did not say whether the price increase had an impact on store traffic.

However, the company's comparable sales in the US only increased by 2.5%, so it's safe to assume the company made a profit. Several Price backlash from diners.

Read more about this quarter from Yahoo Finance Senior Reporter Brooke DiPalma here.
Tuesday, April 30, 2024 04:28 PDT

Quick analysis: Molson Coors also insists on price hikes

Similar to Coca-Cola (KO) this morning, fellow beverage giant Molson Coors (TAP) had a strong quarter as prices continued to rise.

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

Interestingly, Coors Light sales volumes increased by double-digit percentages.

You read that right…Coors Light.
Tuesday, April 30, 2024 4:12 a.m. PDT

Quick analysis: Coca-Cola's earnings reveal one point about inflation

We saw this in last week's PepsiCo (PEP) earnings, and we saw the same thing in this morning's Coca-Cola Company (KO) earnings. Big Food Companies Still Pushing Higher Prices to Consumers (Memo to Fed).

Coca-Cola noted a significant 13% increase in “price/mix” in the first quarter.

Today on the platform, tune in to Yahoo Finance Senior Reporter Brooke DiPalma. She will speak with Coca-Cola CEO James Quincey for additional information regarding the results.