Breaking News
0

Wall St. slightly higher on Microsoft results, rate cut hopes

Stock MarketsJul 19, 2019 04:47PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Traders work on the floor at the NYSE in New York

By Evan Sully and April Joyner

NEW YORK (Reuters) - Wall Street's main indexes fell on Friday following a report that the Federal Reserve plans to cut interest rates by only a quarter-percentage point at the end of the month.

The benchmark S&P 500 erased earlier marginal gains after a Wall Street Journal report on the Fed's plans. According to the report, while the U.S. central bank is not prepared to make a bigger 50-basis-point cut, it may make further rate cuts in the future given concerns about a decline in global economic growth and uncertainty about trade.

On Thursday, stocks had risen as comments from New York Fed President John Williams (NYSE:WMB) increased hopes of a bigger rate cut. Later that day, however, a New York Fed representative said Williams' comments were not intended to telegraph any hints about upcoming Fed policy actions.

"It appears that the Fed has communicated its message," said Bucky Hellwig, senior vice president at BB&T (NYSE:BBT) Wealth Management in Birmingham, Alabama. "They're basically trying to clarify their policy."

Futures market odds of a 50-basis-point cut at the Fed's July meeting soared to 71% late Thursday immediately after Williams' speech but fell to 22.5% on Friday, according to CME Group's Fedwatch tool.

The expiration of options on Friday likely amplified the market reaction to the report, said Dennis Dick, head of markets structure at Bright Trading LLC in Las Vegas.

"It's been one of those days where you get a lot of chop," he said. "This is often on the third Friday of the month. The traders are expecting this."

The Dow Jones Industrial Average (DJI) fell 68.77 points, or 0.25%, to 27,154.2, the S&P 500 (SPX) lost 18.5 points, or 0.62%, to 2,976.61 and the Nasdaq Composite (IXIC) dropped 60.75 points, or 0.74%, to 8,146.49.

For the week, the Dow lost 0.64%, the S&P fell 1.23% and the Nasdaq shed 1.19%.

Earlier on Friday, U.S. stocks had edged higher as strong results from Microsoft Corp (O:MSFT) momentarily buoyed technology stocks. Microsoft shares ended marginally higher, up 0.1%, but the S&P 500 technology index (SPLRCT) fell 0.55%.

Second-quarter profits at S&P 500 companies are now estimated to rise 1%, according to Refinitiv IBES data, in a reversal from earlier expectations of a small drop.

Boeing Co (N:BA) shares gained 4.5%, despite the planemaker's disclosure that it would take a $4.9 billion after-tax hit from the grounding of its 737 MAX, indicating that investors had expected more severe repercussions.

Kansas City Southern (N:KSU) shares rose 4.6% after the railroad operator posted a better-than-expected quarterly profit. Its shares helped the Dow Jones Transport index (DJT) gain 0.6%.

Shares of American Express Co (N:AXP) slipped 2.8% after the credit card issuer warned of higher operating costs this year as it spends heavily on rewards programs to attract customers.

Declining issues outnumbered advancing ones on the NYSE by a 1.29-to-1 ratio; on Nasdaq, a 1.51-to-1 ratio favored decliners.

The S&P 500 posted 45 new 52-week highs and five new lows; the Nasdaq Composite recorded 75 new highs and 84 new lows.

Volume on U.S. exchanges was 6.25 billion shares, compared to the 6.59 billion average for the full session over the last 20 trading days.

Wall St. slightly higher on Microsoft results, rate cut hopes
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments
Jimmy Doan
Jimmy Doan Jul 19, 2019 3:33PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
More lies about rate cut
John Hedger
John Hedger Jul 19, 2019 3:23PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I think you're about 7 hours behind. What I would like to hear is why the Market has been going down steadily all day long since opening bell.
Trend Kill
Trend Kill Jul 19, 2019 3:23PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
lol ikr
William Ray
William Ray Jul 19, 2019 3:04PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
And any Fed cut when the market is making new high is also bad.
William Ray
William Ray Jul 19, 2019 2:30PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The fact that Americans are moving to Chicken thighs and away from Chicken breast Is a big major recession indicator.
Nw Hybrid
Nw Hybrid Jul 19, 2019 2:30PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Naw. It shows more mixing of whites with non whites. They loving the dark meat now
Gabi DG
Gabi DG Jul 19, 2019 2:26PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Microsoft... What a joke!
TW TW
TW TW Jul 19, 2019 1:30PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I wander how deep can Powell stick his tongue to Trump's ****to make him happy so his job can be secured. Good helping tongue to trash the US economy. Good tongue, Powell.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email