The Dow Jones rose at the start of the big earnings week, and the big tech companies dragged the Nasdaq lower

  • Wells Fargo interrupts Microsoft PT
  • Big Tech will announce its earnings later in the week
  • The Federal Open Market Committee will begin a two-day policy meeting starting Tuesday
  • Newmont miner drops after raising annual cost forecast
  • The Dow Jones rose 0.32%, the Standard & Poor’s 0.26%, and the Nasdaq 0.22%.

July 25 (Reuters) – The Dow rose on Monday as investors prepared for the Federal Reserve’s meeting during the week and earnings of some of the largest companies gauged the impact of a stronger dollar and rising inflation, while the Nasdaq fell as technology companies fell. .

Apple Inc (AAPL.O), Amazon.com Inc (AMZN.O), Alphabet Inc (GOOGL.O), Microsoft Corp (MSFT.O), and Meta Platforms Inc (META.O), with a combined market capitalization of 8.9 trillion Dollar account quarter weight benchmark index (.SPX), and is due to report earnings this week.

Big tech stocks fell, with Microsoft down 0.4% after Wells Fargo cut its price target, citing inflation risks, higher rates and a stronger dollar on earnings.

Register now to get free unlimited access to Reuters.com

Shares of Apple Inc fell 0.1%, while shares of chip maker Nvidia Corp (NVDA.O) fell 2.5%.

The dollar, which has reached near 20-year highs in the wake of the Fed’s severe tightening cycle, is seen as a headwind for US companies, especially those with large-scale global operations.

“There are a lot of problems and a lot of headwinds including the dollar, but the good news is that the outlook is much lower than it was a year ago,” said Chris Grisanti, the company’s chief equity strategist and senior portfolio manager. MAI Capital Management.

“So in technology, I don’t think inflation is going to hit that hard. What worries me most is the revenue slowdown in advertising-related business models.”

The Federal Reserve is widely expected to raise interest rates by 75 basis points at the end of its two-day monetary policy meeting on Wednesday, effectively ending the pandemic-era support for the US economy.

Focus will also be on President Jerome Powell’s press conference for clues as to what policy makers are considering a future rate hike amid fears of violent tightening pushing the economy into recession. Read more

“We expect Powell to report that the 75 basis point rallies are extraordinarily large and the funds rate is close to the FOMC’s long-term estimate,” said Paulo Zangiri, chief economist at General Investments.

“That, and signs of a physical slowdown in the economy would tilt the balance to 50 basis points (in September), followed by another one in November and December.”

The US Federal Reserve’s policy rate futures suggested on Monday that benchmark interest rates will peak in January 2023, a month earlier than their previous forecast last week. Read more

Meanwhile, second-quarter GDP data is likely to turn negative on Thursday after the US economy contracted in the first three months of the year.

The traditional measure of a recession is two consecutive quarters of GDP contraction, although the group that is the official arbiter of US recessions looks instead at a wide range of indicators, including jobs and spending.

At 12:05 p.m. EDT, the Dow Jones Industrial Average (.DJI) rose 103.16 points, or 0.32%, to 32002.45, the S&P 500 (.SPX) rose 10.24 points, or 0.26%, to 3,971.87, and the Nasdaq Composite (.SPX) .IXIC) fell 26.30 points, or 0.22%, to 11,807.82 points.

Newmont Corp (NEM.N) fell 11.5% after the miner raised its annual cost forecast and lost its second-quarter profit, weighed by lower gold prices and inflationary pressures. Read more

Advance issues outnumbered losers by 1.80 to 1 on the New York Stock Exchange and by 1.04 to 1 on the Nasdaq.

The S&P posted a new 52-week high and 29 new low, while the Nasdaq made 29 new highs and 75 new lows.

Register now to get free unlimited access to Reuters.com

Additional reporting by Shriyashi Sanyal and Aniruda Ghosh in Bengaluru; Editing by Sriraj Kalovila and Anil de Silva

Our Standards: Thomson Reuters Trust Principles.

Leave a Reply

%d bloggers like this: