U.S. stocks offer muted response to Fed statements

U.S. stocks offer muted response to Fed statements


Risk appetite dominates the events on Wall Street. Investors continue to rely on a robust economy and buy stocks – and do not let the latest comments of US Federal Reserve Banks be misled. The Fed meeting left the US stock market cold mid-week. According to observers, statements by central bankers led by President Janet Yellen contained hardly anything new, so that price reactions were within manageable limits.

The Dow Jones Index rose 0.25 percent to 23435.01 points. It had previously reached a record high in early trading, as did the market-wide S & P 500 and the technology- heavy Nasdaq 100. After the October rally, more and more market players now expect a rally at the end of the year.

The US Federal Reserve has not changed its key interest rate, but keeps open the possibility of an increase in December. Comments from the Fed itself and comments by analysts suggest that. The interest rate decision of Wednesday was in the shadow of the leadership debate anyway. It is still unclear who will lead the most powerful central bank in the world from next year. US President Donald Trump is expected to provide more clarity on Thursday.

The S & P 500 gained 0.16 percent to 2579.36 points. The Nasdaq-100, which had risen to record highs for three consecutive days, closed the month unchanged at 6248.65 points. On a monthly basis, US stocks show strong growth. For October, the S & P500 and Dow Jones grew by 2.2% and 4.3%, respectively. They received a great boost from strong corporate results. By Wednesday morning, 73% of reported companies had exceeded their revenue expectations and 67% had exceeded sales expectations by Thomson Reuters.

Among the individual stocks, the shares of the cosmetics group Estee Lauder added more than 9.22 percent to a record high. Especially with a view to a strong expansion in China, the company had raised its sales and profit targets this year.

Envision Healthcare reported a record 34.2% decline in its share value due to weaker-than-expected results. Steel maker US Steel and navigation expert Garmin also reported numbers that were stronger than expected.

Boom in the auto industry

Price gains shaped the automotive industry. At Ford, the sales increase in October was significantly higher than expected. The papers of the car maker increased by 0.69 percent. In contrast, Fiat Chrysler had sold fewer cars in October than expected. However, that did not weigh on the price, which rose by 1.33 percent. Also at General Motors sales remained below expectations. The course nevertheless increased slightly.

At Apple, investors took a day before the numbers of the iPhone maker for the third quarter gains. The stock was at the bottom of the Dow Jones Index at 1.27 percent. Previously, however, it had risen on three trading days by more than 7 percent again and again to record highs.

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She is the Managing Editor for in-depth discussions and analysis as well as breaking news at Markets Morning. She works closely with Editor-in-Chief Zac Berry on content and publishing initiatives for the site. Brianna Clemons has worked as a financial journalist and editor since 1997. She lives in Bucks County, PA, with her husband, four young children and one dog.