Stock Market Update Wednesday, July 31st, 2019
Today was all about the Fed.
And the Fed did exactly what traders expected: cut interest rates a quarter-point.
Stocks were down a little after the interest rate decision. But things really started to move during the Fed Press Conference.
It was during the press conference when Fed Chair Jerome Powell dropped a bomb, by saying that today’s quarter-point cut was a “midcycle adjustment.”
Powell confused investors by first suggesting that today’s cut might be the only cut, then by saying that there might be more. His first comment cause a huge sell-off, sending the DOW down 478 points before recovering some of the losses.
By the end of the day, the DOW was down 334 points and the S&P 500 was down 33 points. That makes today the worst one-day loss since May 31st, when the DOW fell 355 points and the S&P dropped 37 points.
Here’s where the major indices ended the day:
- The S&P finished with a 1.1% loss. Down 33 points, the S&P ended at 2,980.
- The DOW ended lower by 1.2%. Dropping 334 points, the DOW closed at 26,864.
- The NASDAQ was down 1.2%. With a 98 point loss, the NASDAQ finished at 8,175.
Crude Oil (CL) finished higher for the 5th day straight. With a 0.8% gain, CL ended at $58.53 a barrel.
Apple (AAPL) was up nicely, responding to yesterday’s better than expected earnings. The stock finished with a 2.0% gain in spite of the market sell-off.
Advanced Micro Devices (AMD) lost 10.1% after reporting worse than expected earnings and cutting its full-year revenue guidance.
And Molson Coors Brewing (TAP) was down 5.2% after disappointing numbers.
Now that the Fed Statement is out of the way, traders will turn their attention towards Friday’s Jobs Report.
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.