Stocks were trading mostly higher Wednesday as investors anticipated the end of a Federal Reserve policy meeting, saw talks onto a coronavirus help package in Congress, and continued to sift through a flood of blue-chip company earnings reports. Industry participants braced for possible fireworks on Capitol Hill as leading executives in the world’s most powerful technology companies testify during what’s very likely to be a controversial hearing. Watch: Big Tech’s Most Up-to-date reckoning is coming since it continues to stand up record valuations
What are important benchmarks doing? The Dow Jones Industrial Average
was up 94 points, or 0.4%, to 26,472. The blue-chip benchmark exerts additional equity indicators as the S&P 500
rose 28 points, or 0.9%, to 3,247. The Nasdaq Composite
climbed 110 points, or 1.1%, to 10,512.
Must Know:Buy American (stocks), States Europe’s largest asset manager
The Dow on Tuesday dropped 205.49 points, or 0.8%, to close at 26,379.28, although the S&P 500 dropped 20.91 pointsor 0.7%, to finish at 3,218.44. The Nasdaq closed at 10,402.09, down 134.18 points, or 1.3%. Total composite quantity on Tuesday was 9,334,655,074 stocks, the lowest since Feb. 20, based on Dow Jones Market Data.
What’s driving the market? Investors continue to pay careful attention to discussions between congressional Republicans, Democrats and the White House on a different coronavirus rescue package before their end-of-the-month expiration of supplemental unemployment benefits which were credited with assisting cushion the financial blow against the pandemic.
Treasury Secretary Steven Mnuchin stated the Trump government and Democrats remained far apart on the projected financial stimulus bill.
Senate Majority Leader Mitch McConnell, R-Kentucky, in a television interview Tuesday, said the Senate would not pass a second coronavirus relief step if it doesn’t include a liability defense for company. That underlines one particular area of battle with Democrats, that are pushing for an OSHA standard for companies to follow.
The Federal Reserve will finish a two-day coverage meeting after Wednesday, using a statement due at two Eastern followed by Chairman Jerome Powell’s press conference at two:30 p.m. Economists and shareholders don’t anticipate any significant alterations to coverage, but search for Powell to keep up a dovish tone, signaling the fundamental bank is dedicated to preserving monetary loose coverage and is ready to do more if desired to prevent a further downturn.
“We expect the FOMC to offer up non-committal guidance on continuing to provide additional support to markets and the economy. This is an attempt to remove tail risk rather than offering up more stimulus in the near-term,” said Drew Matus, chief market strategist at MetLife Investment Management.
Read: The Fed won’t be Pleased with how the market is doing, but isn’t perturbed sufficient to take aggressive actions
Also in Washington, the technology industry’s most prominent chief executives are expected to face tough questions on company practices and accusations they have used their market power to thwart competition at a hearing before the House Judiciary Antitrust Subcommittee. Jeff Bezos of Amazon.com Inc.
Sundar Pichai of Google parent Alphabet Inc.
Tim Cook of Apple Inc.
and Mark Zuckerberg of Facebook Inc.
will appear before the board.
Read:Congress includes a million-plus records from Large Tech antitrust evaluation, and are ready to grill big-name CEOs
Check out:Here’s exactly what the CEOs of Apple, Amazon, Facebook and Alphabet will state at Wednesday’s antitrust hearing
The busiest week of earnings reporting period proceeds, including new outcomes from many of closely tracked firms, General Electric Co.
and plane-maker Boeing Co.
which is still reeling in the grounding of its 737 MAX aircraft along with doubt regarding the future of flight in the aftermath of the outbreak.
In U.S. economic statistics, the trade deficit in merchandise fell to $70.6 billion in June, a 6.1% decrease in June from the previous month. The index of pending home sales jumped 16.6% each month, aided by low borrowing rates, when compared with May, the National Association of Realtors reported Wednesday.
Which firms are in focus? General Electric Co.
shares were down 4.9% after the diversified industrial conglomerate reported a wider-than-expected second-quarter loss but topped expectations for revenue and free cash flow.
Stocks of fell 3.4% following the aerospace and defense giant reported that a much wider-than-expected reduction, amid a big miss in commercial airplanes earnings.
General Motors Co.
shares were down 1.8% after the car maker posted a smaller-than-expected loss for the second quarter and sales that topped estimates.
Shares of Starbucks Corp.
rose 4.2% after the coffee chain late Tuesday reported a narrower-than-expected loss and better-than-expected sales in its fiscal third quarter. Starbucks estimated that it missed out on more than $3 billion in sales as the pandemic’s curtailed store traffic and said it would expand curbside pickups.
Advanced Micro Devices Inc.
shares soared more than 12% after the chip maker late Tuesday reported second-quarter earnings that topped expectations and boosted its full-year forecast.
Shares of eBay Inc.
were down 2.2% after the e-commerce company delivered results Tuesday afternoon that were largely in line with Wall Street expectations.
shares were up 0.4% after it disclosed Wednesday that it expects to remove two more cruise ships from its fleet that previously projected.
How are other markets trading? In Asia, China’s CSI 300 index
jumped 2.4%, the Shanghai Composite
rose 2.1%, Hong Kong’s Hang Seng Index
gained 0.5% and Japan’s Nikkei 225
Stocks edged higher in Europe, with its Stoxx 600 Europe indicator
and the UK.’s FTSE 100
both closing down less than 0.1%.
rose 0.4%, on pace to record its ninth straight gain, while the ICE U.S. Dollar Index
was off 0.3%.
Oil futures were higher, together with all the U.S. benchmark
up 0.5% on the New York Mercantile Exchange.
The yield on the 10-year U.S. Treasury note
edged 0.3 basis point into 0.58%. Yields move in the opposite direction of prices.
William Watts donated reporting