The stock market losses remained modest Wednesday with two hours left until the Federal Reserve announces its latest interest rate policy. Alphabet broke out of a base after earnings, giving the market a boost.
The Nasdaq composite was down 0.3% at midday and continued to hold above the 14,000 level. The S&P 500 fell 0.1% and is still around a 15-month high.
With several of its components announcing earnings, the Dow Jones Industrial Average was up 0.1%. If it closes higher, it would be its 13th consecutive gain — the longest win streak since January 1987, according to Dow Jones Market Data.
Boeing climbed more than 5% after beating Q2 estimates and it topped the 223.91 buy point of a flat base. The company says it's getting its arms around production issues that have delayed jet deliveries.
Microsoft fell more than 4% to test its 50-day moving average. The company beat sales and profit expectations, but its sales outlook missed estimates. Coca-Cola reversed higher on improved guidance. The soft-drink giant topped estimates as it continued raising prices. And Visa erased most losses after sinking early following its quarterly report.
The Russell 2000 outperformed with a 0.4% increase. The Innovator IBD 50 ETF fell 0.5%. IBD 50 ETF components Confluent, UFP Technologies, Datadog, Monolithic Power Systems and Arista Networks all fell more than 4%.
Volume rose on the Nasdaq and the NYSE compared with the same time on Tuesday.
The stock market today still has plenty of news ahead.
Stock Market Waits For Fed Decision
No one will be surprised if the Fed raises the federal funds rate by 25 basis points. Fed officials have telegraphed such a move for a while now. Investors will be watching for signs on the next move on rate policy after it announces its latest interest rate policy at 2 p.m. ET.
Many traders are skeptical about any additional rate hikes after today's expected rate increase. But a hawkish stance from Chair Jerome Powell could send sellers on a frenzy.
The 10-year Treasury yield stood at 3.88%, down 4 basis points.
Alphabet jumped more than 6% and gapped above the 127.10 buy point of a cup-with-handle base. Late Tuesday, the parent of Google beat second-quarter earnings views and gave a positive outlook girded with rising investments in AI technology.
Tenable gapped away from a cup-with-handle base in heavy trading and is in a buy range after its earnings report. The cybersecurity company's Q2 sales and profit breezed past estimates. Morgan Stanley, Wells Fargo and other brokerages raised their price targets on Tenable.
J.B. Hunt Transport Services rose above a 200.64 buy point from a cup base. The stock formed the right side of its base in just a few weeks, so it may need a pause.
Dow Extends Win Streak After Powell; Meta, Solar Stock Shine
Stock Market Losers: Snap Plummets Nearly 20%
Snap plummeted 19% in huge volume, crashing below the 50-day and 200-day moving averages. The parent of Snapchat gave a weak outlook, and the social media company struggles with rising costs.
Texas Instruments gapped down to a loss of 5% in heavy volume. Strong demand for auto chips helped the company beat Q2 estimates. But management gave a weak outlook for the current quarter. Texas Instruments is back below its 178.19 buy point after a choppy ride since it first topped that entry.
After today's close, Lam Research, Meta Platforms, Chipotle Mexican Grill and ServiceNow are among the companies announcing quarterly results.
In economic reports, new home sales fell by 18,000 to 697,000 in June, below forecasts for 727,000, according to Econoday.
Despite the weaker report, new home sales are recovering and contributed to GDP growth in the second quarter, said Bill Adams, chief economist for Comerica Bank. "With the Fed primarily focused on inflation, the monthly decline in the median sale price of a newly-built home is more important for monetary policy than the drop in the level," he noted.
