Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Stocks - S&P Slips as Virus Fears Persist, Fed Stands Pat on Rates

Published 29/01/2020, 22:08
© Reuters.
US500
-
DJI
-
BA
-
MCD
-
AAPL
-
GE
-
IXIC
-

Investing.com – The S&P closed lower Wednesday as the Federal Reserve left interest rates unchanged and investors digested mixed corporate earnings.

The S&P 500 fell 0.09%, while the Nasdaq Composite rose 0.06% and the Dow Jones Industrial Average added 0.04%.

The Federal Reserve left interest rates unchanged and signaled that it would continue with its repo funding through the second quarter of the year.

"We expect (reserves to reach an ample level) during the second quarter and our plan, as we do that, is as those purchases get to that level we believe we can gradually reduce them and we believe we can also gradually reduce repo as we reach an ample level," Federal Reserve Chairman Powell said.

The Fed's unchanged stance on monetary policy arrived as the busiest day of earnings unfolded.

Apple (NASDAQ:AAPL) closed at record highs, up 2%, after its earnings topped estimates a day earlier.

McDonald’s (NYSE:MCD), meanwhile, rose 2% after its quarterly results and U.S. comparable-store sales beat Wall Street estimates, driven by price hikes at its U.S. stores.

GE (NYSE:GE) delivered a beat on both the top and bottom lines, led by strength in its aviation business, sending its share price 10% higher. The company also reported free cash flow of $3.9 billion, exceeding its target for the full-year.

Boeing (NYSE:BA) shrugged off weaker-than-expected earnings, rising about 2%, as the aircraft maker posted its first annual loss in more than decades, owing to losses from the grounding of its 737 Max jets.

Falling energy stocks kept a lid on gains in the broader market pressured by a fall in oil prices on a larger-than-expected build in U.S. weekly supplies at a time when investors fret oil demand will take a hit from falling tourism as the spread of the virus in China gathers pace.

The death toll in China rose to 132 overnight, with reported cases of virus topping 6,000, raising fears of contagion as Chinese authorities are struggling to contain the outbreak.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.