Stock Market Update for Wednesday, August 1st, 2018
Today it was all about Apple and the Fed.
Stocks kicked off the first trading day of August with gains, as Apple rallied on better than expected earnings.
But after the strong start, the major indices pulled back ahead of the FOMC Statement.
Released at 2pm ET, the Fed decided to keep rates unchanged. The Fed also but said that the U.S. economy is strong.
Stocks initially dropped after the statement. But after the initial reaction, the major indices rallied back, to pre-statement levels and chopped around until the close. Based on Fed Funds Futures and a 91.2% probability, traders expect the Fed will raise rates in September.
Today the NASDAQ finished higher, but the S&P and DOW were both negative. Lingering trade war concerns didn't help the major indices, with the Trump administration announcing that they are considering a 25% tariff on Chinese goods (instead of the 10% originally proposed). And of course, China has vowed to retaliate if the tariffs are implemented.
Here's where the major indices ended the day:
- The S&P finished with a 0.1% loss. Down 3 points, the S&P ended at 2,813.
- The DOW ended 0.3% lower. Dropping 81 points, the DOW closed at 25,334.
- The NASDAQ was up 0.5%. Higher by 36 points, the NASDAQ finished at 7,707.
- Bitcoin ended 2.1% lower. Dropping $165, Bitcoin is trading at $7,535.
Crude Oil (CL) sold off today, dropping below the $68 mark. With a 1.6% loss, CL ended at $67.67 a barrel. Today's Crude Oil Inventories showed an unexpected rise in U.S. stockpiles (3.8 million barrel increase vs. a 2.6 million barrel drop expected).
Apple (AAPL) hit record highs and rallied 5.9% on earnings. With today's gains, Apple is another $1.95 from becoming the first $1 trillion dollar company - this happens when Apple trades at $203.45 a share.
In earnings news, Pandora Media (P) was a big winner after better than expected earnings. Pandora finished the day with a 14.7% gain.
Here is the economic calendar for the week:
Real Time Economic Calendar provided by Investing.com.
This Stock Market Update was provided by Rockwell Trading Services LLC.