Happy Fed day!
The Federal Open Market Committee once again left the benchmark fed funds rate unchanged in a 0.25% to 0.50% range, as was expected.
Stocks were up for most of the afternoon, but then the Dow and the S&P slipped into the close.
Let’s head to the scoreboard:
- Dow: 18,468.68 (-5.07, -0.03%)
- S&P 500: 2,167.04 (-2.28, -0.11%)
- Nasdaq: 5,139.81 (+29.76, +0.58%)
- WTI Crude oil: $42.02 (-2.1%)
- 10-year Treasury yield: 1.508 (-3.40%)
1. The Fed says there are now fewer reasons to be worried about the US economy. “Near-term risks to the economic outlook have diminished,” the Fed’s policy statement said on Wednesday. “On balance, payrolls and other labour market indicators point to some increase in labour utilization in recent months.”
2. Apple surged after the company crushed expectations. Apple’s stock rose 6.5% on Tuesday after the company reported earnings that were higher than Wall Street’s expectations.
3. Durable goods orders plunged by more than expected. Durable goods orders fell 4% in June, way more than economists’ expectations of a 1.4% drop. This was the second-straight monthly decline — the steepest in nearly two years — which suggests manufacturers are still struggling to overcome a sales slowdown.
4. Pending home sales rose less than expected. Pending home sales rose 0.2% in June, compared to economists’ expectations of a 1.2% rise. Lean housing inventory continued to slow contract signings everywhere except in the Northeast.
5. Trump invited Russian hackers to find and publish Hillary Clinton’s emails. “Russia, if you’re listening, I hope you’re able to find the 30,000 [Clinton] emails that are missing,” Trump said at a press conference. “I think you will probably be rewarded mightily by our press. Let’s see if that happens. That will be nice.” A Trump spokesman was walking back the comments later in the afternoon.
6. Coca Cola’s quarterly sales dropped. Coca-Cola Co reported a 5.1% drop in quarterly revenue, citing “difficult external conditions” in many of its emerging and developing markets, including China and Argentina.