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
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.
SYDNEY (Reuters) - Australia will review the 99-year-lease of a commercial and military port in its north to a Chinese firm, the Sydney Morning Herald reported late on Sunday, a move that could further inflame tensions between Beijing and Canberra. Defence officials are checking if Landbridge Group, owned by Chinese billionaire Ye Cheng, should be forced to give up its ownership of the port in Darwin, the capital of the Northern Territory, on national security grounds, the newspaper said
N'DJAMENA (Reuters) - Chad's military rulers named a new government on Sunday after the battlefield death of President Idriss Deby, but leading opposition figures rejected the appointments as a continuation of an old order they hoped to erase. Deby's death last month on the frontlines in a fight against northern rebels ended his 30-year rule and sparked a crisis in the Central African country which has long been an ally in the West's fight against jihadists in the region
By Josh Smith SEOUL (Reuters) -North Korea lashed out at the United States and its allies in South Korea on Sunday in a series of statements saying recent comments from Washington are proof of a hostile policy that requires a corresponding response from Pyongyang. The statements, carried on state news agency KCNA, come after the White House on Friday said U.S. officials had completed a months-long review of North Korean policy, and underscore the challenges U.S