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Dow drops below 35,000 prior Fed policy update

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US stocks were mixed Wednesday at midday, but near record territory, as investors await the federal policy update and dividend payout in the busiest week of US corporate quarterly results.

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On Tuesday, the Dow Jones Industrial Average fell 85.79 points, or 0.2%, to 35,058.52. The S&P 500 fell 20.84 points, or 0.5%, to 4,401.46 points, posting a five-session acquire. The tech-heavy Nasdaq fell 180.14 points, or 1.2%, to 14,660.58, its biggest one-day drop since May 12.

What is driving the market?

Stocks fought for direction as investors waited for the Federal Reserve to provide a policy update at 2 p.m. ET, with a press conference led by Chairman Jerome Powell to succeed half an hour later.

Investors are hoping to clarify when the central bank will start reducing its monthly bond purchases, although economists say that may not be imminent.

“If today we hear more talk about tapering but no identification, if we hear the word ‘temporary’ a lot, if we hear the word ‘ailing’ a lot, if we hear about delta during the press conference, I would expect the produce curve to slope again because bondholders don’t want Hearing that in the confront of the reality of inflation,” Peter Bokfar, chief investment officer at Bleakley Consulting Group, wrote in a note on Wednesday.

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Investors were bullish on the strength of second-quarter earnings so far reported, with earnings growth in April through the end of June up nearly 80%, led by a 168% rate for the financial sector, according to data compiled by S&P Global Market Information.

Social media group Facebook FB, online payments processor PayPal PYPL, chip group Qualcomm QCOM and automaker Ford F will report following Wednesday’s session closes.

In Asia, the sell-off in tech shares in Hong Kong and China faltered on Wednesday, with the Hang Seng Index closing 1.5% higher following successive declines of at fewest 4% as a result of unexpected regulatory actions by the Chinese government.

On the public health fore, the US Centers for Disease Control and Prevention on Tuesday recommended that Americans – even those who have been fully vaccinated – in parts of the country with “significant or lofty” rates of COVID-19 return to wearing masks in public indoor spaces as delta-type of the coronavirus lead to a spike in COVID cases.

On the data fore, the US trade deficit in goods rose 3.5% in June to $91.2 billion, advanced US wholesale inventories rose 0.8%, while retail inventories increased 0.3% final month.

What companies are focused on?

  • shares Boeing Company Alexandria’s stock rose 5% on Wednesday, following the aerospace and defense giant posted a windfall gain, amid rising business volumes and lower costs for the period.
  • Pfizer Inc. PFE shares rose 3.4% following the company said Wednesday that a third dose of its COVID-19 vaccine will likely provide more protection against the delta variant, which is more contagious and is believed to be driving the recent increase in cases, hospitalizations and deaths in the United States. we
  • McDonald’s Corp.. MCD reported second-quarter net income of $2,219 billion, or $2.95 per share, up from $483.8 million, or 65 cents per share, final year. Its stock fell 2.1%.
  • Bristol-Myers Squibb Company. BMY said Wednesday it turned in a gain of $1,055 billion, or 47 cents a share, in the second quarter, following a loss of $85 million, or 4 cents a share, in the alike period final year. Shares rose 1.7%.
  • Humana you HUM shares fell 6.8% following it reported second-quarter earnings and revenue that beat expectations, but maintained its revised packed-year earnings forecast, while saying it expects to post a $1 billion acquire in the current quarter on its Kindred at Home ownership.
  • company fabric. TPR said Wednesday that it will hoist the wages of all American employees to at fewest $15 an hour, effective September 1. 5. Its shares fell 1.9%.
  • Apple company Shares fell 1.2% following the iPhone maker said its earnings nearly doubled, but it also forecast a slowdown in growth.
  • Microsoft Corporation. Shares rose 0.1% following the software giant topped $60 billion in annual gain for the first time at the end of a record year.
  • Alphabet Inc.Google’s Class A stock jumped 3.5% following Google’s parent company reported powerful ad sales that pushed revenue and earnings overhead analysts’ previous estimates.
  • Starbucks Corporation. The shares fell more than 2.5% following the coffee group turned a quarterly gain, but it also reported higher costs of Americas operations.
  • Wal-Mart Corporation WMT said beforetime Wednesday that it has partnered with Adobe Inc. ADBE to bring its technology to other companies.
  • Canadian Cannabis Corporation Stock Tilray Corporation TLRY jumped 25% in trade on Wednesday, following turning a gain in the fourth quarter of its fiscal year.

How do other assets work

  • The produce on the 10-year Treasury rose 1 basis point at 1.25%. Yields and debt prices move in opposite directions.
  • The ICE US dollar index, a measure of the currency against a basket of six major competitors, rose 0.1%.
  • Oil futures were higher, with the US CL00 index rising 0.8% on Tuesday at $72.25 a barrel, while GC00 gold futures were trading flat at $1,800 an ounce.
  • In European stocks, the Stoxx 600 Europe SXXP closed 0.7% higher and London’s FTSE 100 UKX rose 0.3%.
  • Elsewhere in Asian trade, the Shanghai SHCOMP Composite Index finished 0.6% lower, while Japan’s Nikkei 225 Index was down 1.4%.

Barbara Colmayer contributed to the report


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