The Dow Jones Industrial Average was near session highs at midday Tuesday as the Fed meeting got underway. Other indexes climbed.
X
Airline stocks, which had been among the market leaders, fell broadly, while United Parcel Service (UPS) announced that it reached a contract agreement with the Teamsters union. UPS shares were volatile after the news, reversing slightly lower at midday.
The Dow rose 0.2%, the S&P 500 rose 0.3%, and the Nasdaq climbed 0.46% at midday. The small-cap Russell 2000 rose 0.3%. The Innovator IBD 50 ETF (FFTY) outperformed with a 1.3% gain.
Volume was higher on the Nasdaq and lower on the NYSE compared with the same time on Monday.
The Fed is widely expected to raise rates by 25 basis points on Wednesday afternoon to a target rate of 5.25% to 5.5%. The CME FedWatch Tool sees a 98.9% chance of a hike. But are markets pricing it in as a final hike?
The Conference Board’s consumer confidence number rose to 117.0 in July from a revised 110.1 the prior month. Economists had forecast 111.8, per Econoday. The adjusted S&P CoreLogic Case-Shiller home price index rose 1% in May from a 0.9% increase the previous month. The consensus forecast was for a 0.8% increase.
The yield on the benchmark 10-year Treasury note rose four basis points to 3.89%.
Dow Jones Stocks
Tech titan Microsoft (MSFT) rose more than 1% at midday. Shares are getting some support at the 10-day moving average ahead of earnings after today’s close.
Verizon (VZ) rose as well after a strong quarter. Wireless service revenue rose from the previous year while free cash flow of $8 billion in the first half of the year was higher than the $7.2 in 2022’s first half. Shares are yet to retake their 50-day line.
Apple (AAPL) will report on Aug. 3. The stock is holding above its 21-day exponential moving average.
Stocks Moving Today
Airlines stocks are falling after Alaska Air Group (ALK) gave a soft outlook. The airline said it expects current-quarter revenue growth of 0% to 3% from a year ago, reports said. The stock gapped below its 50-day moving average in heavy volume and erased all gains from its breakout at 51.02 and was down more than 12% at midday, according to IBD MarketSmith chart analysis. That triggered sell signals.
Allegiant Travel (ALGT) fell nearly 3%. Delta Air Lines (DAL) gapped down nearly 4%. United Airlines (UAL) is back near a buy point of 54.05. American Airlines (AAL) is testing its 50-day line.
But a few stocks broke out.
Southern Copper (SCCO) is rising above a cup buy point of 82.05. Logitech (LOGI) has gapped up in strong volume after earnings beat expectations, although its outlook was cautious. Zoetis (ZTS) is breaking out of a cup at 187.82.
General Electric (GE) jumped 6% in big volume after a strong second quarter. Focus on aerospace and renewable energy is paying off. General Motors (GM) fell after its earnings report.
In other earnings movers, Cadence Design Systems (CDNS) fell while NXP Semiconductor (NXPI) rose after beating estimates.
Shares of Spotify (SPOT) continued to sell off in the stock market today, extending a three-day losing streak after earnings were announced today. Shares have fallen below the 50-day line in heavy volume, a sell signal.
ARK Invest fund manager Cathie Wood wove in and out of four medical stocks, according to the firm’s disclosures. The ARK Genomic Revolution ETF (ARKG) added Moderna (MRNA) and Accolade (ACCD) but sold Exact Sciences (EXAS) and Schrodinger (SDGR).
Please follow VRamakrishnan on Twitter for more news on the stock market today.
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