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Wall Street rises on upbeat earnings as Fed looms; Nasdaq up over 1%

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

Topics
Wall Street | US stocks | Lockdown

Reuters 

Photo: Bloomberg
Advanced Micro Devices Inc jumped 12.4 per cent after the chipmaker raised its full-year revenue forecast | Photo: Bloomberg

rose on Wednesday as a slew of positive earnings updates and hopes for assurances of continued support from the overshadowed concerns about next steps for the government's coronavirus support plan.

Advanced Micro Devices Inc jumped 12.4 per cent after the chipmaker raised its full-year revenue forecast. Its shares were among the top boosts to the and Nasdaq.

The Philadelphia chip index rose 1.5 per cent.

Starbucks Corp climbed 3.9 per cent after the coffee chain said business was "steadily recovering" worldwide and it would return to profitability in the current quarter.

Of the 163 firms that have reported results, 79.1 per cent 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 US. 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 US. 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.

"Market participants expect the Fed to keep policy in the same place, that is a very accommodative place. Powell's objective is not to make any waves in the press conference," said Vincent Reinhart, chief economist at Mellon, a BNY Mellon Investment Management firm in Boston.

US President Donald Trump said on Wednesday his administration and Democrats in Congress were far apart in their efforts to come together on a coronavirus relief bill, and he suggested he was not in a hurry to strike a deal.

"The longer (the bill) takes, the more likely there will be a lapse in unemployment benefits and it will be an unnecessary source of uncertainty for the market and economy," Reinhart added.

At 10:48 a.m. ET, the Industrial Average rose 60.75 points, or 0.23 per cent, at 26,440.03, the gained 24.28 points, or 0.75 per cent, at 3,242.72. The Nasdaq Composite was up 111.18 points, or 1.07 per cent, at 10,513.27.

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 3.3 per cent 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 saw less cash outflow than estimated in the second quarter, even as the industrial conglomerate reported a wider-than-expected loss. Its shares fell 4.4 per cent.

The chief executives of Amazon.com Inc, Facebook Inc, Apple Inc and Alphabet's Googleare 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 2.11-to-1 ratio on the NYSE and a 1.37-to-1 ratio on the Nasdaq.

The S&P index recorded 28 new 52-week highs and no new low, while the Nasdaq recorded 54 new highs and 10 new lows.

First Published: Wed, July 29 2020. 21:39 IST
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