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Coffee With Greta: Waiting On The Fed


DJIA Futures: -57 (-0.1%)

SPX Futures: -4 (-0.1%)

NASDAQ Futures: +25 (+0.1%)

Good morning friends!

Futures are mixed as traders await today’s Fed decision.

Let’s get right to it!

Fed Day

The Federal Reserve’s two-day policy meeting wraps up today with an interest rate announcement at 2:900 p.m. ET. 

The Central Bank is not expected to change rates at this meeting. 

The focus for traders will be on the updated Summary of Economic Projections (dot plot) and the Chairman’s press conference at 2:30 p.m.

The Fed’s most recent dot plot in December signaled plans for three rate cuts in 2024. 

But hotter-than-expected inflation and labor market data since then is expected to have possibly dialed those plans back. 

As of this morning, CME Group’s FedWatch Tool shows 55% of traders betting on the first rate cut in June. 

Chipotle Jumps After Announcing Stock Split

Chipotle Mexican Grill (CMG) shares are up 5.5% ahead of the open after announcing plans for a 50-for-1 stock split. 

In a filing after hours on Tuesday, the company said its board had approved the split.

It is now subject to shareholder approval at the annual meeting on June 6. 

If approved, shareholders of record as of June 18 will receive 49 additional shares for every one they own. 

The stock is expected to begin trading on a post-split basis when the market opens on June 26. 

Shares closed at a record high $2.797.56 on Tuesday and are up over 70% over the past year. 

Mortgage Demand Falls

Weekly mortgage demand pulled back as rates pushed higher. 

The Mortgage Bankers Association reported total application volume fell 1.6% last week. 

Purchase applications fell 1% weekly and 14% year over year. 

Refinance applications dropped 3% weekly and 3% annually. 

The drop came as the average 30-year fixed contract rate rose to 6.97% from 6.84%.

Mortgage News Daily currently shows the 30-year fixed rate back above 7%. 

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