Dow Inches Higher as Big Tech in Political Hot Seat; Fed Decision Eyed

This post was originally published on this site – The Dow inched higher on Wednesday as investors digested a slew of mixed earnings from corporates ahead of the Federal Reserve policy meeting that will likely show that the central bank will persist with monetary stimulus to support the economy.

The Dow Jones Industrial Average rose 0.35%, the Nasdaq Composite gained 1.02% and the S&P 500 added 0.89%.

The slew of earnings from corporates continue, with heavyweight Dow component Boeing (NYSE:BA) falling 3% after reporting mixed quarterly results. The aircraft maker reported wider-than-expected quarterly losses and warned it would trim production amid weakness in the aviation sector.

Shopify Inc (NYSE:SHOP) fared better, rallying 9% as the e-commerce company delivered blowout second-quarter results, with earnings and revenue topping analysts’ consensus estimates.

Starbucks (NASDAQ:SBUX) climbed 4% as it raised its earnings outlook for the year after reporting a smaller-than-expected loss in the fiscal third-quarter.

General Electric (NYSE:GE) posted a bigger-than-expected quarterly loss as its performance was hurt by weakness in its jet-engine business, sending its shares more than 3% lower.  

Tech held onto gains as investors awaited testimony from Facebook (NASDAQ:FB), Alphabet (NASDAQ:GOOGL), (NASDAQ:AMZN) and Apple  (NASDAQ:AAPL) in congressional hearing on antitrust in Big Tech. The sector was also helped by surge in chip stocks, led by a 12% pop in Advanced Micro Devices (NASDAQ:AMD) as the chipmaker raised its revenue guidance and beat quarterly earnings estimates.   

Monetary policy is set to grip investor attention later in the session as the Fed readies its policy decision at 14:00 ET (18:00 GMT). With many expecting that the Fed will stand pat on rates, chairman Jerome Powell’s remarks will take on added importance.

Energy, meanwhile, was helped by a rise in oil prices following data showing U.S. stockpiles unexpectedly declined by more than 10 million barrels last week.

In other news, Eastman Kodak Co (NYSE:KODK) jumped 330% after the company’s received a federal cash injection to produce ingredients needed for generic drugs as President Donald Trump further efforts to lower drug prices.

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