Wall St up slightly before Fed decision; investors assess earnings

Wall St up slightly before Fed decision; investors assess earnings

Wall Street’s main indexes experienced a choppy morning but rose in the afternoon as investors focused on the Federal Reserve’s monetary policy update and analyzed the latest earnings reports. The two-day monetary policy meeting of the Fed is expected to result in unchanged interest rates, and investors will pay close attention to Fed Chair Jerome Powell’s comments for insights into future plans.

While some investors awaited the Fed update, others reacted to disappointing earnings reports and expressed concerns about geopolitical issues. Caterpillar, a heavy-machinery maker, saw a 6% decline in its stock as slowing machinery demand overshadowed a quarterly earnings beat. Similarly, drugmaker Amgen experienced a 4% drop in its stock due to third-quarter sales of certain medicines falling below expectations.

Greg Bassuk, the CEO of AXS Investments in New York, attributed the market’s return to positive territory to the growing consensus that the Fed is unlikely to implement further rate hikes this year. He also highlighted mixed earnings reports and companies expressing concerns about future quarters, particularly with rising energy prices and ongoing uncertainty surrounding conflicts in Israel and Ukraine.

Bassuk emphasized that the fluctuating market activity reflects the fluctuating sentiment of investors. The market’s ups and downs are a reflection of the varying outlooks and emotions of investors.

Overall, the Dow Jones Industrial Average and other indexes experienced gains, with the Dow rising by 0.13%, the S&P by 0.36%, and the Nasdaq by 0.17%.The Dow Jones Industrial Average (.DJI) increased by 42.72 points, or 0.13%, to reach 32,971.68. Similarly, the S&P 500 (.SPX) rose by 15.01 points, or 0.36%, to reach 4,181.83, and the Nasdaq Composite (.IXIC) added 21.30 points, or 0.17%, reaching 12,810.78.

Among the major S&P 500 sectors, nine out of eleven were advancing. Real estate (.SPLRCR) led the gains with a 1.6% increase, while communication services (.SPLRCL) experienced a 0.3% decline, making it the biggest loser.

All three indexes were on track to record their third consecutive month of losses.

Nvidia (NVDA.O) saw a 1.7% decrease in its stock price following a report that stated the latest U.S. restrictions could lead the chip designer to cancel billions of dollars worth of orders to China.

The release of data showing a significant increase in U.S. labor costs during the third quarter raised concerns that the Federal Reserve might maintain higher interest rates for a longer period.

According to LSEG data, out of the 279 companies in the S&P 500 that have reported earnings so far, over 78% have exceeded analyst estimates. Analysts anticipate a 4.9% growth in earnings for S&P 500 companies in the third quarter.

Pinterest (PINS.N) experienced an 18.8% increase in its stock price as the image-sharing platform surpassed revenue and profit estimates for the third quarter.

VF Corp (VFC.N) witnessed a 14.9% drop after the Vans sneaker maker withdrew its annual forecast. On the other hand, Arista Networks (ANET.N) gained 14.4% due to a positive fourth-quarter revenue outlook.

Sarepta’s gene therapy failed to meet its primary goal in a rare muscular dystrophy trial, resulting in a decline in its stock price.Sarepta Therapeutics (SRPT.O) experienced a 38.3% decline due to the failure of its muscle disorder gene therapy in a late-stage trial. Similarly, shares of Sarepta’s client, Catalent (CTLT.N), also dropped by 15.9%.

On the NYSE, advancing issues outnumbered declining ones with a ratio of 1.91-to-1. Likewise, on Nasdaq, advancers had a ratio of 1.52-to-1.

In terms of new highs and lows, the S&P 500 recorded 1 new 52-week high and 15 new lows. Meanwhile, the Nasdaq Composite achieved 13 new highs and 230 new lows.

This article was reported by Sinéad Carew, Amruta Khandekar, and Shashwat Chauhan in Bengaluru. It was edited by Saumyadeb Chakrabarty, Shounak Dasgupta, Maju Samuel, and David Gregorio.

We adhere to The Thomson RushHourDaily Trust Principles.

About News Team

Hi, I'm Alex Perez, an experienced writer with a focus on lifestyle and culture news. From food and fashion to travel and entertainment, I love exploring the latest trends and sharing my insights with readers. I also have a strong interest in world news and business, and enjoy covering breaking stories and events.

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