Upbeat earnings lift Wall Street as focus shifts to Fed

By Medha Singh and Devik Jain (Reuters) - U.S. stocks rose on Wednesday as a slew of positive earnings updates and hopes for assurances of continued support from the Federal Reserve overshadowed concerns about next steps for the government's coronavirus relief plan

Reuters July 30, 2020 00:07:09 IST
Upbeat earnings lift Wall Street as focus shifts to Fed

Upbeat earnings lift Wall Street as focus shifts to Fed

By Medha Singh and Devik Jain

(Reuters) - U.S. stocks rose on Wednesday as a slew of positive earnings updates and hopes for assurances of continued support from the Federal Reserve overshadowed concerns about next steps for the government's coronavirus relief plan.

Advanced Micro Devices Inc jumped 12.4% after the chipmaker raised its full-year revenue forecast. Its shares were among the top boosts to the S&P 500 and Nasdaq.

The Philadelphia chip index rose 1.8%.

Starbucks Corp climbed 4.1% after the coffee chain said business was "steadily recovering" worldwide and it would return to profitability in the current quarter.

Of the 163 S&P 500 firms that have reported results, 79.1% have surpassed a low bar of quarterly profit expectations, according to Refinitiv IBES data.

Recent data pointed to a possible slowdown in business and hiring as several U.S. states reimposed restrictions after a spike in COVID-19 infections, while deaths in the country caused by the disease surpassed 150,000 on Wednesday.

Investors will keep a close watch on how the U.S. central bank addresses these economic risks at the end of a two-day policy meeting. The Fed's statement is expected at 2 p.m. ET (1800 GMT), which will be followed by Chair Jerome Powell's press conference.

"The consensus would be that Fed remains accommodative until we have a vaccine or a treatment for COVID-19, which would mean they are going to continue to provide liquidity which has essentially driven the market off the March low," said Nate Fischer, chief investment strategist at Strategic Wealth Partners in Cleveland.

Top Trump administration officials and Democratic congressional leaders tried to narrow stark differences over coronavirus aid on Wednesday, with no guarantees they can craft a compromise before some unemployment benefits expire.

At 12:43 p.m. ET, the Dow Jones Industrial Average was up 102.99 points, or 0.39%, at 26,482.27, the S&P 500 was up 29.70 points, or 0.92%, at 3,248.14. The Nasdaq Composite was up 113.14 points, or 1.09%, at 10,515.23.

Ten of the 11 major S&P sectors were higher with technology stocks providing the biggest boost to the S&P 500.

Boeing Co slipped 3.1% as it slashed production on its widebody programs and reported a bigger-than-expected loss due to the fallout from the pandemic.

General Electric Co fell 4.7% as it reported a wider-than-expected loss in the second quarter, but saw less cash outflow than estimated.

The chief executives of Amazon.com Inc, Facebook Inc, Apple Inc and Alphabet's Google are set to face a congressional hearing on antitrust on Wednesday, marking the first time appearing before lawmakers together.

All four companies are set to report results on Thursday.

Advancing issues outnumbered decliners for a 2.85-to-1 ratio on the NYSE and a 1.93-to-1 ratio on the Nasdaq.

The S&P index recorded 35 new 52-week highs and no new low, while the Nasdaq recorded 65 new highs and 12 new lows.

(Reporting by Medha Singh and Devik Jain in Bengaluru; Editing by Shounak Dasgupta)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

EU poised to secure Sanofi deal for coronavirus vaccine
Business

EU poised to secure Sanofi deal for coronavirus vaccine

By Foo Yun Chee BRUSSELS (Reuters) - The European Union's executive on Friday wrapped up preliminary talks with French drugmaker Sanofi aimed at securing its COVID-19 vaccine for the 27-country EU bloc, the latest deal with vaccine producers. Armed with an emergency fund of more than 2 billion euros ($2.4 billion), the European Commission wants to strike deals with up to six drugmakers for their vaccines for their 450 million citizens against the coronavirus that has killed 674,000 people worldwide

U.S. consumer spending presses ahead; declining income poses challenge
Business

U.S. consumer spending presses ahead; declining income poses challenge

By Lucia Mutikani WASHINGTON (Reuters) - U.S. consumer spending increased for a second straight month in June, setting up consumption for a rebound in the third quarter, though the recovery could be limited by a resurgence in COVID-19 cases and the end of expanded unemployment benefits.

U.S. imposes sanctions on Chinese company over abuse of Uighurs
Business

U.S. imposes sanctions on Chinese company over abuse of Uighurs

By Steve Holland and Daphne Psaledakis WASHINGTON (Reuters) - The United States intensified its economic pressure on China's Xinjiang province on Friday, imposing sanctions on a powerful Chinese company and two officials for what it said were human rights abuses against Uighurs and other ethnic minorities. The move, the latest blow to U.S.-China relations, came a week after U.S