Stocks inch lower ahead of Powell testimony

Stocks opened Tuesday’s trading session fractionally lower on Tuesday as investors awaited Federal Reserve Chair Jerome Powell’s latest appearance before lawmakers on Capitol Hill.

Shortly after the opening bell on Tuesday the S&P 500, Dow, and Nasdaq were each down by less than 0.1%. Stocks rallied early Monday before paring gains to finish virtually unchanged.

Powell will speak before the Senate Banking Committee on Tuesday and the House Financial Services Committee on Wednesday as part of his semi-annual trip to Capitol Hill to update members of Congress on the Fed’s actions. Powell’s prepared remarks are set for release at 10 a.m. ET, with the Fed chair set to face questions from lawmakers beginning shortly thereafter.

Investors will be paying close attention to any shift in the Fed chair’s tone regarding the likelihood of further interest rate increases. Markets have begun to price in at least two additional 0.25% rate hikes from the central bank over its next two meetings; investors began the year with optimism the Fed would stop its rate-hiking campaign as soon as February.

The Fed will kick off its next two-day policy meeting in two weeks with a policy announcement set for the afternoon of March 22.

Federal Reserve Chairman Jerome Powell prepares to testify before the House Financial Services Committee on Thursday, June 23, 2022, in Washington. When Powell last appeared before Congress, inflation had reached a four-decade high of nearly 9% and showed no sign of easing. This week, Powell returns to Capitol Hill for two days of hearings under far different circumstances.(AP Photo/Kevin Wolf)

Elsewhere in markets, WTI crude oil was little changed early Tuesday, off about 0.5% to trade near $80 a barrel. The 10-year Treasury yield, which has been a focal point of market action over the last few weeks, stood just below 4% early Tuesday.

On the earnings side, results from Dick’s Sporting Goods (DKS) early this morning sent shares of the sporting goods retailer up as much as 6%.

The company offered full-year earnings per share guidance that came in more than $1 per share above expectations, according to Bloomberg data. Dick’s expects to earn $12.90-$13.80 per share in its fiscal 2023, up from the $12.04 the company earned last year.

Same-store sales in the company’s fourth quarter rose 5.3% with CEO Ed Stack telling investors the company’s inventory levels are in “great shape” to start 2023.

Elsewhere in single-stock moves, shares of Snap (SNAP) gained more than 9% on Monday and were up another 4% early Tuesday, with Bloomberg attributing the rally to optimism over a TikTok ban in the U.S.

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