US stocks rise as investors analyze earnings, await Fed decision

Shares were moderately higher on Wednesday as investors awaited the conclusion of a Federal Reserve policy meeting, watched conversations about a coronavirus aid package in Congress, and continued to advance through an avalanche of corporate earnings reports first order.

Market participants also braced themselves for possible fireworks on Capitol Hill, as top executives from the world’s most powerful technology firms testify in what is likely to be a contentious audience.

See: Big Tech’s latest reckoning is coming as it continues to rack up record valuations

What are the main benchmarks doing?

The Dow Jones Industrial Average DJIA,
+ 0.25%
It rose 13 points to 26,392. The benchmark benchmark index lagged behind other equity indices after the S&P 500 SPX,
+ 0.65%
It increased 14 points, or 0.4%, to 3,232. The Nasdaq COMP Compound,
+ 1.02%
It rose 75 points, or 0.7%, to 10,477.

I need to know:Buy American (shares), says Europe’s largest asset manager

The Dow fell 205.49 points, or 0.8%, on Tuesday to close at 26,379.28, while the S&P 500 lost 20.91 points, or 0.7%, to finish at 3,218.44. The Nasdaq closed at 10,402.09, with a fall of 134.18 points, or 1.3%. Total compound volume on Tuesday was 9,334,655,074 shares, the lowest since February 20, according to Dow Jones Market Data.

What is driving the market?

Investors continue to pay close attention to negotiations between Republicans in Congress, Democrats and the White House on another coronavirus rescue package before the end of the month of the expiration of supplemental unemployment benefits that have been credited for cushioning the blow. economic of the pandemic. .

Treasury Secretary Steven Mnuchin said the Trump administration and Democrats stayed very separate on the proposed fiscal stimulus bill.

Senate Majority Leader Mitch McConnell, R-Kentucky, in a television interview on Tuesday, said the Senate would not approve another coronavirus relief measure if it does not include a business accountability shield. That highlights an area of ​​conflict with Democrats, who are pushing for an OSHA standard for companies to follow.

The Federal Reserve will conclude a policy meeting two days later on Wednesday, with a statement at 2 p.m. Eastern Time followed by President Jerome Powell’s press conference at 2:30 p.m. M. Economists and investors do not expect any major policy adjustments, but look for Powell to maintain a moderate tone, indicating that the central bank is committed to maintaining a flexible monetary policy and is prepared to do more if necessary to avoid a further slowdown. .

“There has been a lot of talk that the Fed will reiterate the point that rates will remain ultra low for years to come,” said David Madden, market analyst at CMC UK. “The central bank has already been extremely aggressive about its stimulus packages, and there is an opinion that they will do whatever it takes to cushion the blow of the health crisis.”

Read: The Fed will not be happy with the performance of the economy, but is not disturbed enough to take aggressive action.

The most prominent CEOs in the tech industry are expected to face tough questions about business practices and accusations that they have used their market power to thwart competition at a hearing before the House of Representatives Judiciary Antimonopoly Subcommittee. Jeff Bezos from Inc.
+ 0.85%,
Sundar Pichai from Google father Alphabet Inc.
+ 0.75%
+ 0.77%,
Tim Cook from Apple Inc.
+ 1.52%
and Mark Zuckerberg from Facebook Inc.
+ 1.11%
+ 1.11%
will appear before the panel.

Also read:Congress has over a million documents from Big Tech’s antitrust investigation, and they’re ready to criticize big-name CEOs

Check out:This is what CEOs of Apple, Amazon, Facebook and Alphabet will say at Wednesday’s antitrust hearing

The busiest week of the earnings reporting season continues, with results before the opening bell for several companies closely watched, including General Electric Co.
and aircraft manufacturer Boeing Co.
He is still reeling from the grounding of his 737 MAX aircraft and uncertainty about the future of flight in the wake of the pandemic.

In US economic data, the goods trade deficit fell to $ 70.6 billion in June, a 6.1% decrease in June from the previous month.

Which companies are in focus?
  • General Energy Shares fell 2.1% even after the diversified industrial conglomerate reported a higher-than-expected second-quarter loss but exceeded expectations for revenue and free cash flow.
  • Actions of Boeing It fell 0.9% after the defense and aerospace giant reported a much larger loss than expected, amid a large loss in commercial aircraft revenue.
  • General Motors Co.
    + 1.29%
    Shares fell 0.5% after the automaker posted a lower-than-expected loss for the second quarter and sales that exceeded estimates.

  • Actions of Starbucks Corp.
    + 4.63%
    It rose 4.4% after the coffee chain reported a narrower-than-expected loss and better-than-expected sales in its fiscal third quarter on Tuesday night. Starbucks estimated that it lost more than $ 3 billion in sales because the pandemic reduced store traffic and said it would expand sidewalk trucks.

  • Advanced Micro Devices Inc.
    + 10.29%
    Shares were up nearly 13% after the chipmaker reported second-quarter earnings on Tuesday night that exceeded expectations and raised its full-year forecast.

  • Actions of eBay Inc.
    They fell more than 3% after the e-commerce company released results on Tuesday afternoon that were largely in line with Wall Street expectations.

How do other markets operate?

In Asia, China’s CSI 300 index 000300,
+ 2.42%
jumped 2.4%, the Shanghai SHCOMP compound,
+ 2.06%
the Hang Seng HSI Hong Kong Index rose 2.1%,
+ 0.44%
gained 0.5% and Nikkei 225 NIK from Japan,
fell 1.2%.

Stocks rose the most in Europe, with the Stoxx 600 Europe SXXP index,
up less than 0.1% and the UK FTSE 100 UKX,
+ 0.01%
scored 0.1%.

GCQ20 Gold Futures,
+ 0.16%
rose 0.5%, while the ICE US Dollar DXY index,
was off 0.2%. CLU20,
+ 0.78%
Meanwhile, oil futures were higher, with the US benchmark CLU20,
+ 0.78%
up to 0.9% on the New York Mercantile Exchange.

The yield on the 10-year US Treasury bond TMUBMUSD10Y,
edged 0.4 basis points to 0.577%. Yields move in the opposite direction of prices.