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Home / Business / Stocks tend to stay higher after Fed minutes

Stocks tend to stay higher after Fed minutes



US. Stock prices remained largely higher on Wednesday as investors ran the minutes of the March March meeting of the Federal Reserve, detailing why the central bank had abandoned its efforts to normalize its monetary policy.

How are the benchmarks running?

The S & P 500 Index

SPX, + 0.35%

rose 5 points, or 0.2%, to 2,883, while the Nasdaq Composite

COMP, + 0.69%

rose 32 points, or 0.4%, to 7,942. The Dow Jones Industrial Average

DJIA, + 0.03%

however, fell 31

points or 0.1% to 26,118.

What drives the market?

The meeting of Fed policy-makers last month dropped plans for further interest rate hikes in 2019 as US and global economies were uneasy and inflation was unexpectedly tamed, as outlined in the minutes of the Wednesday afternoon's meeting evident.

Read: Fed Protocol Highlights

The Fed cited weak US growth, a weaker global economy, Britain's struggles to leave the European Union, and continued trade tensions between the Trump administration and China List of worries.

"A majority of respondents expected that the development of economic prospects and the risks to the outlook would probably justify leaving the target range unchanged for the remainder of the year," the minutes said.

The central bank continued to be optimistic about inflation.

Data released Wednesday morning showed that consumer prices rose at the fastest pace in 14 months in March, with gains dampened by the exclusion of volatile food and energy prices.

Investors also watched a planned EU summit, where the main theme of Britain's attempt should be to organize an orderly exit from the European trading bloc. The EU will discuss a possible extension of the United Kingdom's Brexit plans.

The previously announced European Central Bank has, as expected, made no changes in monetary policy, confirming that it intends to keep interest rates current until at least 2019. ECB President Mario Draghi said he had risks in his press conference The Eurozone economic outlook remained down and policymakers were prepared to use all the tools at their disposal should the outlook worsen.

Read: ECB chief Draghi does not want to stop investors from thinking thoughtfully

On Tuesday, the S & P 500 had an eight-stage winning streak over fears of escalating trading tensions with the US Government European Union and weaker global outlook of the International Monetary Fund.

The Trump government threatened to impose tariffs on imports from the European Union worth US $ 11 billion, forcing growing global trade tensions beyond US-China speculation.

What do strategists say?

"I think there is slightly more inflation below the surface than the market has realized," said Willie Delwiche, investment strategist at R. W. Baird, to MarketWatch. "The Fed is trying to be transparent and says," We will wait for ice for the moment and we will give time to what we have done in the past two years to come to terms with what is happening. The market seems to believe that if you move in the direction of a "wait and see" policy, you are actually preparing for interest rate cuts this year. "

" In the past, the Fed took minutes to clarify the confusion over what it said. "After the last meeting, Delwiche added, arguing that the Fed's minutes could provide more clarity on how the Fed interprets the latest data.

" The increase in total prices by 0.4% month-on-month Inflation rose from 1.5% to 1.9%, mainly due to the continued recovery in gasoline prices, "wrote Andrew Hunter, a leading US economist at Capital Economics.

"The further decline in the core CPI inflation rate of 2.1% to a 13-month low of 2% in March (+ 2.1%) underlines that the inflation outlook will be little above the Fed's target for the foreseeable future "We continue to believe that weaker activity growth will persuade officials to lower interest rates before the end of the year."

Which stocks are in focus?

Ride-sharing venture Lyft Inc. .

LYFT, -10.76%

fell 7.5% as investors focused on Uber Inc.'s plans for its own IPO. The stock has fallen more than 19% since Lyft's IPO on March 28.

Uber is expected to launch its IPO market campaign and, according to a series of reports, sell $ 10 billion worth of shares. This public debut is reported to be on the New York Stock Exchange in May.

shares of Boeing Co.

BA, -1.10%

fell 1% after Intelsat SA

I, [3.699007] + 3.90 % said lost communication with its satellite Intelsat 29e, manufactured by Boeing.

Apple Inc.

AAPL, + 0.58%

Levi Strauss & Co .

LEVI, + 3.84%

surged 5.4% after the apparel designer reported its first quarterly results since its IPO in March on Tuesday.

JetBlue Airways Corp. .

JBLU, + 3.61%

shares rose 2.6% after the airliner had seen an increase in traffic of nearly 8% in March, although revenue per seat is expected to be around 3.1% will fall the first quarter.

Stocks of [Delta] Delta Lines Inc. .

DAL, + 1.58%

increased 1.6% after the airline reported first-quarter earnings and revenue that exceeded Wall Street expectations while delivering a positive performance ,

The shares in Asia closed mostly lower, the Japanese Nikkei 225

NIK, -0.53%

which is down 0.5%, Hong Kong's Hang Seng Index

HSI, -0.13%

lost 0.1%, while China's Shanghai Composite Index

SHCOMP, + 0.07%

increased by 0.1%.

European stocks struck as mixed as the Stoxx Europe 600

SXXP, + 0.26%

rose 0.3%.

The oil price rose on the commodities markets

CLK9, + 0.75%

extended profits and gold futures

GCM9, + 0.31%

was higher. The dollar

DXY, -0.09%

retired in the meantime against his peers.

– Mark DeCambre contributed to this report

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