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U.S. stocks ended mixed on Wednesday, with the S&P 500 and the Nasdaq ending slightly lower, as major indexes made a failed attempt to bounce back after the Fed hiked interest rates yet again. This raised fresh concerns among investors about an economic slowdown. However, the Dow ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.23% or 82.05 points to close at 35,520.12, extending its gains for the 13th straight session, the first since February 1987. Nineteen components of the 30-stock index ended in positive territory, while 11 closed in the red.
The tech-heavy Nasdaq Composite finished at 14,127.28, declining 0.12% or 17.27 points.
The S&P 500 slipped 0.02%, or 0.71 points, to end at 4,566.75. Six of the 11 sectors of the benchmark index ended in positive territory. The Communication Services Select Sector SPDR (XLC) gained 1.6%, while the Technology Select Sector SPDR (XLK) fell 1.3%.
The fear-gauge CBOE Volatility Index (VIX) increased 4.8% to 13.19. A total of 9.92 billion shares were traded on Wednesday, lower than the last 20-session average of 10.32 billion.
Advancers outnumbered decliners on the NYSE by a 1.75-to-1 ratio. On the Nasdaq, a 1.64-to-1 ratio favored declining issues. The S&P 500 posted 29 new 52-week highs and no new lows. The Nasdaq Composite recorded 72 new highs and 92 new lows.
Fed Hikes Interest Rates to 22-Year High
The Fed went ahead with its planned 25-basis-point interest rate hike, taking its benchmark borrowing costs to the highest level in more than 22 years. The quarter percentage point increase brings the fed funds rate to a target range of 5.25-5.5%.
Fed Chair Jerome Powell acknowledged that inflation has eased somewhat since the middle of last year but emphasized that a considerable distance still needs to be covered to achieve the target of 2%.
Following the Fed's rate hike, U.S. Treasury yields fell amid turbulent trading. The yield on 10-year Treasury notes slipped to 3.865%, while the two-year yield, which is often considered a gauge of interest rate expectations, fell to 4.8433%.
Investors Digest Mixed Earnings Results
The earnings season is gathering pace, and investors closely watched companies, including a batch of big tech players, which reported their quarterly results on Wednesday.
Align Technology, Inc. ((ALGN - Free Report) ) reported quarterly earnings of $2.22 per share, beating the Zacks Consensus Estimate of $2.02 per share. The company posted revenues of $1billion, surpassing the Zacks Consensus Estimate by 1.65%.
GSK plc ((GSK - Free Report) ) came up with earnings of $1.44 per share for the quarter ended June 2023, surpassing the Zacks Consensus Estimate of $1.32 per share. The company posted revenues of $62.07 billion, outpacing the Zacks Consensus Estimate by 3.03%.
Meta Platforms, Inc. ((META - Free Report) ) reported second-quarter earnings of $3.23 per share, beating the Zacks Consensus Estimate of $2.87 per share. The company posted revenues of $32 billion, surpassing the Zacks Consensus Estimate by 3.51%. Meta currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
The U.S. Census Bureau and the U.S. Department of Housing and Urban Development jointly reported that new home sales declined 12.7% in June to 697,000 from May’s revised figure of 715,000. The May number was revised up from 763,000.
In other economic reports, U.S. commercial crude oil inventories decreased 0.6 million barrels for the week ending Jul 21, from the previous week.
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Stock Market News for Jul 27, 2023
U.S. stocks ended mixed on Wednesday, with the S&P 500 and the Nasdaq ending slightly lower, as major indexes made a failed attempt to bounce back after the Fed hiked interest rates yet again. This raised fresh concerns among investors about an economic slowdown. However, the Dow ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.23% or 82.05 points to close at 35,520.12, extending its gains for the 13th straight session, the first since February 1987. Nineteen components of the 30-stock index ended in positive territory, while 11 closed in the red.
The tech-heavy Nasdaq Composite finished at 14,127.28, declining 0.12% or 17.27 points.
The S&P 500 slipped 0.02%, or 0.71 points, to end at 4,566.75. Six of the 11 sectors of the benchmark index ended in positive territory. The Communication Services Select Sector SPDR (XLC) gained 1.6%, while the Technology Select Sector SPDR (XLK) fell 1.3%.
The fear-gauge CBOE Volatility Index (VIX) increased 4.8% to 13.19. A total of 9.92 billion shares were traded on Wednesday, lower than the last 20-session average of 10.32 billion.
Advancers outnumbered decliners on the NYSE by a 1.75-to-1 ratio. On the Nasdaq, a 1.64-to-1 ratio favored declining issues. The S&P 500 posted 29 new 52-week highs and no new lows. The Nasdaq Composite recorded 72 new highs and 92 new lows.
Fed Hikes Interest Rates to 22-Year High
The Fed went ahead with its planned 25-basis-point interest rate hike, taking its benchmark borrowing costs to the highest level in more than 22 years. The quarter percentage point increase brings the fed funds rate to a target range of 5.25-5.5%.
Fed Chair Jerome Powell acknowledged that inflation has eased somewhat since the middle of last year but emphasized that a considerable distance still needs to be covered to achieve the target of 2%.
Following the Fed's rate hike, U.S. Treasury yields fell amid turbulent trading. The yield on 10-year Treasury notes slipped to 3.865%, while the two-year yield, which is often considered a gauge of interest rate expectations, fell to 4.8433%.
Investors Digest Mixed Earnings Results
The earnings season is gathering pace, and investors closely watched companies, including a batch of big tech players, which reported their quarterly results on Wednesday.
Align Technology, Inc. ((ALGN - Free Report) ) reported quarterly earnings of $2.22 per share, beating the Zacks Consensus Estimate of $2.02 per share. The company posted revenues of $1billion, surpassing the Zacks Consensus Estimate by 1.65%.
GSK plc ((GSK - Free Report) ) came up with earnings of $1.44 per share for the quarter ended June 2023, surpassing the Zacks Consensus Estimate of $1.32 per share. The company posted revenues of $62.07 billion, outpacing the Zacks Consensus Estimate by 3.03%.
Meta Platforms, Inc. ((META - Free Report) ) reported second-quarter earnings of $3.23 per share, beating the Zacks Consensus Estimate of $2.87 per share. The company posted revenues of $32 billion, surpassing the Zacks Consensus Estimate by 3.51%. Meta currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
The U.S. Census Bureau and the U.S. Department of Housing and Urban Development jointly reported that new home sales declined 12.7% in June to 697,000 from May’s revised figure of 715,000. The May number was revised up from 763,000.
In other economic reports, U.S. commercial crude oil inventories decreased 0.6 million barrels for the week ending Jul 21, from the previous week.