Wall Street’s main indexes are moving higher, with investors going on the counterattack after the heavy losses on Tuesday and shortly before the Federal Reserve’s interest rate decisions.
The US central bank is expected to announce another interest rate hike of 75 basis points today, continuing the aggressive policy tightening that began last March as part of its effort to rein in inflation. Another increase today by 75 m.v. will drive total increases since March to 225 bp.
Investors’ attention will be monopolized by Fed Governor Jerome Powell’s usual press conference after monetary policy decisions. Investors will look to Powell’s speech for clues on whether the bank is considering slowing policy tightening to avert the risk of derailing growth.
Indicators – Statistics
On the board, the Dow Jones added 127.75 points, or 0.40%, to 31,891.19, while the S&P 500 gained 45.20 points, or 1.15%, to 3,965.99. The technology Nasdaq with a jump of 246.98 points or 2.14% climbs to 11,808.44 points.
Of the 30 stocks that make up the Dow Jones industrial index, 16 move with a positive sign and 14 with a negative sign. The biggest increase was recorded by Microsoft with gains of $11.92 or 4.73% to $263.82, followed by Boeing at $160.84 with an increase of 3.16% and Salesforce with gains of 2.84 % to $175.31
The biggest losers are Home Depot (-1.62%), 3M (-1.29%) and Coca-Cola (-1.14%).
Meanwhile, investors continue to evaluate corporate announcements about their second-quarter financial results. More than 150 S&P 500 companies have reported results so far, with about 70% beating analysts’ estimates, according to FactSet data.
Tech giants Alphabet and Microsoft missed analysts’ earnings estimates in after-hours earnings calls yesterday, with both companies posting double-digit revenue growth.
Investment attention was gathered by the results of other big names in the American economy such as Boeing, Visa, Kraft Heinz, Chipotle Mexican Grill, Texas Instruments.
Later in the day, data released today showed that durable goods orders rose 1.9% in June mainly due to gains in the auto and aircraft categories.
At the same time, the US goods trade deficit shrank 5.6% in June to $98.2 billion, the US Commerce Department said.
Source: Capital
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