Market Overview

Mid-Afternoon Market Update: Dow Rises Over 400 Points; Fed Leaves Key Rates Unchanged

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Toward the end of trading Wednesday, the Dow traded up 1.74 percent to 25,007.27 while the NASDAQ climbed 2.05 percent to 7,172.32. The S&P also rose, gaining 1.53 percent to 2,680.49.

Leading and Lagging Sectors

Wednesday afternoon, the information technology shares climbed 1.9 percent. Meanwhile, top gainers in the sector included Advanced Micro Devices, Inc. (NASDAQ: AMD) up 16 percent, and Extreme Networks, Inc. (NASDAQ: EXTR) up 8 percent.

In trading on Wednesday, financial shares rose by just 0.1 percent.

Top Headline

As Fed officials intimated and economists predicted, the Federal Open Markets Committee unanimously voted Wednesday to maintain interest rates between 2.25 percent and 2.5 percent. Its statement assured constant rates for some time.

After four rate raises in 2018, the Fed reiterated a new policy of “patience” as it awaits clarity on how slowing global growth and market volatility affect domestic outlook. The central bank altered its policy statement to eliminate outlook for gradual increases.

 

Equities Trading UP

Eyenovia Inc (NASDAQ: EYEN) shares got a boost, shooting up 21 percent to $3.1714 after the company's MIST-1 mydriasis study met its primary endpoint.

Shares of Co-Diagnostics Inc (NASDAQ: CODX) shot up 116 percent to $2.40 after the company announced the sale of 3 million preferred shares convertible to common stock at $1.20 per share, along with the elimination of $2 million in debt.

Advanced Micro Devices, Inc. (NASDAQ: AMD) shares were also up, gaining 16 percent to $22.29 following fourth-quarter results. Fourth-quarter earnings came in at 8 cents per share, falling in-line with analyst estimates. Revenues came in at $1.42 billion, missing estimates by $30 million. The company issued first-quarter sales guidance of $1.2 billion. The company reported Q4 gross margin of 41 percent versus 34 percent in the same quarter last year. AMD says 2019 margins are expected to be higher than 41 percent.

Equities Trading DOWN

AC Immune SA (NASDAQ: ACIU) shares dropped 61 percent to $4.1501 after collaboration partner Roche decided to discontinue phase 3 studies of Crenezumab in Alzheimer's disease.

Shares of Tupperware Brands Corporation (NYSE: TUP) were down 29 percent to $26.95 after the company missed Q4 sales estimates and provided soft Q1 and FY19 EPS guidance.

Silicon Laboratories Inc. (NASDAQ: SLAB) was down, falling around 12 percent to $78.49 after the company reported worse than expected Q4 EPS and revenue results.

Commodities

In commodity news, oil traded up 2.74 percent to $54.77 while gold traded up 0.06 percent to $1,316.00.

Silver traded up 0.57 percent Wednesday to $15.93, while copper rose 1.47 percent to $2.765.

 

Eurozone

European shares closed mostly higher today. The eurozone’s STOXX 600 climbed 0.36 percent, the Spanish Ibex Index dropped 0.52 percent, while Italy’s FTSE MIB Index climbed 0.36 percent. Meanwhile the German DAX fell 0.33 percent, and the French CAC 40 climbed 0.95 percent while U.K. shares rose 1.58 percent.

Economics

Private sector employers added 213,000 jobs in January, ADP reported. However, economists were expecting a rise of 180,000 jobs.

The pending home sales index fell 2.2 percent to a reading of 99 in December.

Domestic crude supplies rose 900,000 barrels for the week ended January 25, the Energy Information Administration reported. However, analysts were projecting a gain of 3.1 million barrels. Gasoline stockpiles dropped 2.2 million barrels, while distillate stockpiles declined 1.1 million barrels last week.

As Fed officials intimated and economists predicted, the Federal Open Markets Committee unanimously voted Wednesday to maintain interest rates between 2.25 percent and 2.5 percent. Its statement assured constant rates for some time.

Posted-In: Mid-Afternoon Market UpdateNews Eurozone Commodities Global Intraday Update Markets

 

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