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* Apple, Boeing boost Dow after results
* Starbucks slips when a virus triggers the closure of a store in China
* Dow by 0.04%, S & P 500 by 0.09%, Nasdaq by 0.06% (close market updates)
By Chuck Mikolajczak
NEW YORK, Oct. 6 / PRNewswire / – The S&P 500 declined slightly on Wednesday as companies like Apple, Boeing and General Electric saw a first surge after quarterly results faded after a Fed announcement.
The shares initially reacted little to the Fed’s policy statement, but steadily lost ground after a press conference by chairman Jerome Powell. As expected, the Fed kept interest rates constant without making any new forecasts on its balance sheet. However, Powell noted that “uncertainty about the outlook remains” and that the coronavirus outbreak has occurred in China.
Since the Fed’s last key rate cut in October, the third cut in 2019, policymakers have agreed to keep their key rate in the current range of 1.50% to 1.75%.
Apple Inc rose 2.09% after the iPhone maker reported a Christmas business profit late Tuesday that exceeded analysts’ expectations, although it anticipated further disruption in China-affected China.
Boeing Co grew 1.72% after the aircraft manufacturer projected nearly $ 19 billion in costs for founding its 737 MAX jets, which were smaller than many analysts expected, and contributed to the company’s report to compensate for the first annual loss since 1997.
Several companies have warned of a malfunction due to the Corona virus outbreak, and a Chinese government economist has been cited that the country’s economic growth could drop to 5% or even less.
“I don’t want to minimize the impact of the virus on humans, but what I’m more concerned with is not that the market hasn’t responded to the virus, but that it has grown so much in the first 2 1/2 weeks after January very, very strong year 2019, “said Ellen Hazen, portfolio manager at FLPutnam Investment Management in Wellesley, Massachusetts.
“The market seems to have overtaken itself.”
The Dow Jones Industrial Average rose 11.6 points or 0.04% to 28,734.45, the S&P 500 lost 2.84 points or 0.09% to 3,273.4 and the Nasdaq Composite rose 5.48 points or 0.06% to 9,275.16.
With earnings increasing, analysts expect fourth-quarter earnings for S&P 500 companies to remain unchanged, up from an estimated 0.6% decline earlier this season, Refinitiv data.
General Electric gained 10.32% after the industrial group set a higher cash target for 2020.
The Starbucks Corp. fell 2.12% after a financial shock warning as thousands of restaurants closed and business hours in China adjusted.
The increase in emissions exceeded the decrease in emissions on the NYSE by 1.01 to 1; On the Nasdaq, a ratio of 1.62 to 1 favored declines.
The S&P 500 posted 46 new 52-week highs and 8 new lows. The Nasdaq Composite posted 80 new highs and 65 new lows.
Approximately 6.88 billion shares changed hands on US exchanges, compared to 7.45 billion daily on average over the past 20 exchange sessions. (Report by Chuck Mikolajczak edited by Leslie Adler and Sonya Hepinstall)