The major stock market indexes rose sharply in early trading as investors awaited today's Fed rate hike decision.
The Nasdaq composite was up 2.6% while the S&P rose 1.2%. The Dow Jones Industrial Average gained 0.5%. The small-cap Russell 2000 gained 0.7%.
Volume was flat on the Nasdaq and lower on the NYSE compared with the same time on Tuesday.
European stocks were up, with the German DAX up 0.3%. The London FTSE 100 rose 0.5% and the Paris CAC 40 gained 0.7% in afternoon trading.
Economic Indicators Show Positive Orders
The MBA mortgage applications numbers came in for the week ended July 22. The composite index dipped 1.8% week over week; the purchase index declined 0.8% and the refinance index dropped 3.7%.
The June durable goods orders rose 1.9%, above the consensus forecast of a 0.5% decline. Ex-transportation, orders rose 0.3% vs. views for 0.2%. The core capital goods increase was 0.5% vs. the expected 0.2%.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 31905.89 | +144.35 | +0.45 |
| S&P 500 | (0S&P5) | 3968.94 | +47.89 | +1.22 |
| Nasdaq | (0NDQC ) | 11835.86 | +273.28 | +2.36 |
| Russell 2000 | 180.57 | +1.24 | +0.69 | |
| IBD 50 | 27.31 | +0.25 | +0.92 | |
Last Update: 10:26 AM ET 7/27/2022 |
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Investors are expecting a 75-basis point rate hike at today's Fed meeting. The announcement is due at 2 p.m. ET. The 10-year Treasury yield was down 4 basis points to 2.76%.
Earnings Report Moves GPS Company
Boeing was up 2.7% after reporting a larger-than-expected Q2 loss and a miss on sales. But the company beat free cash flow expectations considerably.
Garmin, the manufacturer of GPS navigation products, lost 7.9% after reporting worse-than-expected Q2 sales and lowering its full-year guidance.
Keep up to date on upcoming earnings by checking the IBD earnings calendar.
Stock Market Movers Include Music Service
Spotify, the digital music company, was up 15.7% after reporting better than expected Q2 monthly active users of 433 million and a beat on sales. Shares rose even though its loss was worse than expected.
Bristol Myers Squibb, was down 0.7% despite beating expectations for sales and earnings. But the company lowered its sales guidance slightly for 2022. Shares are finding resistance at the 21-day exponential moving average on the MarketSmith chart. BMY is No. 4 in the ethical drugs industry group, and the group ranks No. 27 out of the 197 industries IBD tracks.
Stocks Run After Fed's Powell Hints At Slower Rate Hikes
IBD 50 Stocks Moving Include Solar
The Innovator IBD 50 ETF, a gauge of growth stocks, was up 0.7%.
SolarEdge, an Israeli-based solar company, was up 6.3% in heavy volume, on news that JPMorgan named SolarEdge as one of the top picks in the alternative energy space. The stock broke out of a cup-with-handle base, hitting the 314.62 buy point, and is in the 5% buy zone. SEDG is No. 3 in the solar energy industry group.
Enphase Energy, another solar company, was up 13.3%, also in heavy volume after it reported better-than-expected Q2 results Tuesday after market close. The stock is extended above the 20%-25% profit zone. The IBD 50 stock is No. 1 in the solar industry, which is No. 2 out of 197 groups. Cowen & Co. raised its price target on Enphase to 278 from 240, and kept its outperform rating on the stock.
The Invesco Solar ETF popped 3.4% as Enphase and SolarEdge are the top two holdings in the fund. Share price for the ETF is seeing resistance at the 200-day moving average.
Crude oil futures rose 0.6% to $95.45 per barrel. Gold futures were down 0.3% to $1,730 an ounce. Bitcoin futures gained 2.5%, to $21,435.
