The stock market reached the best levels of the day in afternoon trading despite nervousness about the Fed meeting. Small caps and the S&P 500 led the market.
The S&P 500 climbed 1%. The Nasdaq composite gained 0.7%, while the Dow Jones Industrial Average rose 0.7% also. The small-cap Russell 2000 index outperformed with a 1.2% increase.
Volume fell on the NYSE and Nasdaq compared with the same time on Monday.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33281.24 | +219.74 | +0.66 |
| S&P 500 | (0S&P5) | 4195.97 | +40.59 | +0.98 |
| Nasdaq | (0NDQC ) | 12623.99 | +87.97 | +0.70 |
| Russell 2000 | 189.11 | +2.22 | +1.19 | |
| IBD 50 | 32.90 | +0.54 | +1.67 | |
Last Update: 1:26 PM ET 5/3/2022 |
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The price of U.S. crude oil eased 1.4% to $103.77 a barrel, while the 10-year Treasury yield rose 4 basis points to 2.93%.
The Labor Department on Tuesday reported a seasonally adjusted 11.5 million job openings in March, an increase from 11.3 million the prior month.
"Workers are still very much in demand," said Indeed's director of economic research, Nick Bunker. "Despite concerns about an imminent recession, employers are still looking to hire at near historic rates and are desperately holding on to the workers they have."
Oil Stocks Gain As Stock Market Braces For Fed Decision
Investors are anxious as they await results from the Federal Reserve's two-day meeting, which started today. Most investors, analysts and economists expect a half-point rate increase, the first increase by a half-point or more in 22 years. The larger question may be what the Fed's plans are for its balance sheet.
Fed officials have suggested the central bank will shed $95 billion each month, which is another form of monetary tightening. The Fed's statement comes out at 2 p.m. ET Wednesday.
BP reported mixed Q1 results early Tuesday, logging a massive profit for the quarter and an even larger write-down on assets in Russia. Shares of BP jumped 6.3%. Other oil stocks gained as well, with the Energy Select Sector SPDR gaining 2.6% to lead all sectors.
BP posted earnings of $25.56 a share. But BP also reported a $25.5 billion write-down related to assets in Russia, from which it's backing away due to international sanctions tied to Russia's attack on Ukraine. Those assets primarily involve a nearly 20% stake in state-run oil producer Rosneft.
Wall Street expected BP earnings per share to double to $18.64, while sales were seen jumping 70% to $44.669 billion.
BP's earnings received a sharp boost from the confluence of events as oil remains above $100 a barrel. Demand for oil from China is slowing due to a prolonged lockdown, and the EU is curbing Russian crude imports. Oil-producing members of OPEC+, which includes Russia, don't appear eager to fill the gap.
Shares of BP gapped up above its 50-day moving average. BP stock is in a consolidation with a 34.26 buy point, according to MarketSmith. Its relative strength line is nearing new highs.
Shell and ConocoPhillips earnings are on tap early Thursday.
Pfizer Gains On Earnings
Pfizer's first-quarter metrics topped expectations. Pfizer earned $1.62 per share, excluding certain items, on $25.66 billion in sales. Earnings soared nearly 71% and sales popped 82% operationally.
Pfizer maintained its outlook for 2022 sales. For the year, the company expects its BioNTech-partnered Covid shot, Comirnaty, to bring in $32 billion in sales. In addition, Pfizer called for $22 billion from its antiviral pill known as Paxlovid. The two products were mixed, with Comirnaty beating expectations but Paxlovid light. Excluding the impact of Comirnaty and Paxlovid, sales inched 2% higher.
Pfizer's shares gained 1.8% as they tried to form a base. The stock is testing its rising 200-day moving average but is still shy of its 50-day moving average.
Fertilizer stocks were mixed after first-quarter results.
Mosaic strengthened in afternoon trading and was up 8% although sales came in below estimates. Mosaic sees supply-chain problems extending into Q2. Nutrien missed the consensus earnings estimate, but raised its full-year profit forecast. The stock rose nearly 2.6% and is finding support at the 10-week moving average.
FMC plunged more than 6% after the fertilizer company beat earnings expectations but trimmed guidance. The stock slid below its 50-day moving average in heavy volume, in what appears to be a sell signal.
The Innovator IBD 50 ETF rose 1.5%, with oil and materials stocks leading.
Follow Michael Molinski on Twitter @IMmolinski
