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 support plan, U.S. stocks rose on Wednesday.
Advanced Micro Devices Inc jumped 12.4% after the chipmaker raised its full-year revenue forecast… Starbucks Corp climbed 3.9% 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…
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.
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.
MacDailyNews Take: A rising tide lifts all boats.
The “Fed”..it’s so funny that people use this name when the bank is not at all federal.
The market acts like a joyous toddler about to receive a cookie. Once received, satiation will last so long and the youngster’s posture will again expect another treat. The child grows into disproportioned and impulsive being. Fed serves this being at the expense of the “whole.”
Long run: unsustainable and declining. See Japan and observe where US is headed.
Like Reuben the Bulldog give me that treat…..
Wall St always goes when Main St. goes down. The rising tide lifts the well manicured marina boats, not leaky fishing boats.
I assume “up” should have followed “goes” in your post? I agree. Fed’s infusion always stilts the big money holders (banks, big biz, fin-biz) for rational reasons. They fall and we all get pricked, but the long standing damage is to the smaller guy/leaky boats because on top of not getting a direct infusion, they get pricked with inflation on income levels that have been mostly static for decades.
I’ve ready a lot lately that states the above is the main reason for the big and growing chasm betwn the marina and fishing boats (have/have nots). The Fed is the main factor.