U.S. Major Averages On Hold Ahead of Fed Minutes

Barry Adams
21 Aug, 2024
New York City

Stocks were little changed in early trading on Wall Street as investors looked forward to the release of the latest policy meeting. 

The S&P 500 index and the Nasdaq Composite traded around the flatline, and investors are looking for clues about the possible rate cut in September. 

Moreover, investors also awaited comments from Fed Chair Jerome Powell at the annual gathering of central bankers in Jackson Hole, Wyoming. 

Market indexes over the last two weeks have rebounded sharply from the near 10% losses earlier in the month after the U.S. economy added fewer than expected jobs in July, setting off the fears of an unexpected economic slowdown. 

Market sentiment recovered after retail sales, jobless claims, and inflation data were ahead of expectations, calming market anxieties and setting aside the worries of a slowdown. 

Stocks are resting in today's session after market indexes halted an 8-day rally on Tuesday, the longest stretch of gains since late 2023. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.2% to 5,608.94, the Nasdaq Composite rose 0.1% to 17,842.28, and the Russell 2000 index fell 1.2% to 2,142.17. 

The yield on 2-year Treasury notes edged lower to 3.99%, 10-year Treasury notes decreased to 3.81%, and 30-year Treasury bonds inched higher to 4.08%.

WTI crude oil increased $0.17 to $73.34 a barrel, and natural gas prices edged up 1 cent to $2.20 a thermal unit.

Gold fell by $2.52 to $2,510.94 an ounce, and silver increased by $0.18 to $29.62.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 101.47.

 

U.S. Stock Movers

Toll Brothers increased 1.1% to $135.0, and the luxury home builder reported higher-than-expected fiscal third quarter results and lifted its estimate of home deliveries for the year. 

Keysight Technologies jumped 11.5% to $155.69, and the test equipment manufacturing company reported better-than-expected results in the latest quarter and lifted its outlook for the current quarter. 

Macy's Inc. decreased 8.5% to $16.24, and the department store operator reported better-than-expected adjusted earnings. 

However, the retailer lowered its annual sales outlook to between $22.1 billion and $22.4 billion from the previous estimate between $22.3 billion and $22.9 billion. 

The company also guided comparable sales to shrink between 0.5% and 2.0%, compared to the previous estimate of a fall between 1.0% and 1.5%. 

Target Corp. jumped 15% to $166.51, and the retailer reported better-than-expected second quarter results. 

Revenue increased 2.7% to $25.4 billion from $24.8 billion, net income advanced 42.8% to $1.2 billion from $835 million, and diluted earnings per share rose 42.4% to $2.57 from $1.80 a year ago. 

The company guided comparable store sales increase in the third quarter to rise between zero and 2.0%, and GAAP and adjusted earnings per share between $2.10 and $2.40. 

Target said it repurchased $155 million of its shares in the second quarter, retiring 1.1 million shares of common stock at an average price of $145.94. 

The company paid dividends of $509 million in the second quarter, compared with $499 million last year, an increase of 1.9% in the dividend per share.

As of the end of the quarter, the company had approximately $9.5 billion available under the repurchase program authorized by its Board of Directors in August 2021.

Arch Resources Inc. jumped 6.5% to $135.0, and the company said it plans to merge with Consol Energy to form a new company, Core Natural Resources. 

Consol Energy jumped 7.2% to $102.33. 

The combined company is expected to have annual revenue of $5.7 billion and a coal production capacity of 101 million tons, with an export potential of 25 million tons. 

Core National, after the merger, would operate 11 mines in six states, and the combination is expected to generate cost and operational synergy between $110 million and $140 million within six to 18 months following the close of the transaction, primarily from the logistics optimization.