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S & P 500 hits record high as Fed signals interest rate cuts

  • The S & P 500 hit a record high on Thursday, as investors were driven by signs of lower Federal Reserve interest rates.
  • Oracle (ORCL – Get Report) Raises After Business Software Company Exceeds Analysts' Profits and Turnover Expectations for the fourth quarter and first quarter earnings are expected to exceed forecasts. Oracle is the stock of the day with real money.
  • Tesla shares (TSLA – Get Report) fell after Goldman Sachs' analysts lowered their price target for the stock, while arguing that Wall Street demand forecasts for the clean energy auto maker are likely to be overly optimistic [19659004] Wall Street Overview

    The S & P 500 hit a record high in intraday trading on Thursday as investors were spurred on by signals of lower interest rates from the Federal Reserve.

    The S & P 500 surpassed its April 30 closing record of 2,945.64, rising 0.84% ​​to 2,951

    . The Dow Jones Industrial Average climbed 215 points or 0.81% to 26,719 points, about 100 points less than its own record of 26,828.39. The Nasdaq gained 0.94%.

    Fed Chairman Jerome Powell and his colleagues on the Federal Open Market Committee said in a statement on Wednesday that they would "patiently" monitor the incoming data after the central bank had decided to keep interest rates steady. Instead, the Fed said it would act "appropriately" to sustain nearly 10 years of economic expansion.

    Powell defied President Donald Trump by keeping interest rates stable, but he prepared the market for several interest rate cuts between now and today before the end of the year.

    "Stock resilience amid growing geopolitical tensions between the US and Iran is a clear reminder not to fight the Fed," said Alec Young, global market research executive, FTSE Russell. "With the cautious message from the central bank continuing to cut interest rates, investors will be protected from other risks as the cost of capital and bond prices fall, and it will be interesting to see whether this will continue in the coming week if the G20 Meeting does not work. " on the high expectations of investors for a breakthrough in trade between the US and China. "

    Oil prices rose sharply on Thursday after the US confirmed that a sea surveillance drone was shot down by an Iranian missile over the Strait of Hormuz, and prices went up even more when Trump tweeted," Iran has made a very big mistake! "

    Brent crude rose 2.96% to $ 63.65 a barrel, while West Texas Intermediate crude rose 4.2% to $ 56.21 a barrel.

    Oracle (ORCL – Get Report) edged up 8.6% to $ 57.19 after the company software business outperformed fourth-quarter earnings and revenue expectations and Q1 earnings were likely to exceed forecasts. Oracle is the real-money stock of the day.

    Tesla stocks (TSLA – Get Report) fell 1.1% to $ 223.99 after Goldman Sachs analysts lowered their price target for the stock while they argued that the W All Street forecasts for the demand for environmentally friendly car manufacturers are probably too optimistic.

    Darden Restaurants (DRI – Get Report) fell 1% to $ 116.22 after Olive Garden, Longhorn Steakhouse and Cheddar Scratch Chicken had missed Wall Street's fourth-quarter earnings expectations.

    Kroger stock (KR – Get Report) slipped 1.1% to $ 23.38 after the grocery chain posted a profit in the first quarter that was in line with analysts' forecasts as product sales increased Kroger improved, but this is not enough to impress the shareholders.

    The New York Stock Exchange set the reference price for Slack Technologies' direct public offering on Thursday at $ 26. The DPO of the Workplace Messaging Platform bypasses the traditional underwriting process. Slack is trading under the symbol "(WORK)".

    In economic news, the Philadelphia Federal Reserve's manufacturing index fell to 16.6 from 16.6 in May, its lowest level since February, when the index fell to zero. Initial jobless claims, a rough method of measuring layoffs, fell 6,000 to 216,000 in the seven days to 15 June. According to economists estimates, new applications totaled a seasonally adjusted 220,000.

    Canopy Growth (CGC – Get Report), whose shareholders approved a $ 3.4 billion merger on Wednesday with US-based cannabis company Acreage Holdings (ACRGF), which reports a profit after the closing bell on Thursday ,

    Watch: Canopy has some advantages over competitors with cannabis [19659006]

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