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Julie Young
Julie Young
Articles (1478) 

US Indexes Close Higher Wednesday

Nasdaq up 1.35%

The Dow Jones Industrial Average closed at 26,539.57 on Wednesday with a gain of 160.29 points or 0.61%. The S&P 500 closed at 3,258.44 for a gain of 40.00 points or 1.24%. The Nasdaq Composite closed at 10,542.94 for a gain of 140.85 points or 1.35%. The VIX Volatility Index was lower at 24.10 for a loss of 1.34 points or -5.27%.

Wednesday’s market movers

U.S. indexes closed higher Wednesday. The Federal Open Market Committee reported no changes to its monetary policy after a two-day policy meeting. This leaves the federal funds rate target at 0% to 0.25%. Powell commented that a recovery is underway, but also noted that the rising number of cases recently has affected reopenings, leading to slowed improvements.

FAANG stocks, except Netflix (NFLX), were all higher for the day. Congressional leaders held an antitrust hearing with chief executive officers from Amazon (AMZN), Apple (AAPL), Facebook (FB) and Google (GOOG)(GOOGL), discussing a multitude of issues that could potentially lead to Congressional actions.

Earnings highlights included:

  • General Electric (NYSE:GE): Revenue of $17.75 billion decreased 38.4% year over year and beat estimates by $480 million. Second-quarter GAAP earnings of 27 cents missed estimates by 15 cents and a non-GAAP loss of 15 cents missed estimates by 6 cents.
  • Boeing (NYSE:BA): Revenue of $11.81 billion decreased 25.0% year over year and missed estimates by $1.14 billion. A second-quarter GAAP earnings loss of $4.20 per share missed estimates by $2.17 and a non-GAAP loss of $4.79 missed estimates by $2.26.
  • PayPal (NASDAQ:PYPL): Revenue of $5.26 billion increased 22.0% year over year and beat estimates by $260 million. Second-quarter GAAP earnings of $1.29 beat estimates by 80 cents and non-GAAP earnings of $1.07 beat estimates by 20 cents.

Economic reports affecting market trading included the following:

  • The MBA Mortgage Applications Index decreased by 0.8% following an increase of 4.1%. The MBA’s average 30-year mortgage rate was unchanged at 3.2%.
  • The goods trade balance showed a deficit of $70.64 billion in June, improving from a deficit of $75.3 billion.
  • Wholesale inventories decreased 2% in June following a decrease of 1.2%.
  • Pending home sales increased 16.6% in June and 6.3% year over year.
  • The EIA’s Weekly Petroleum status report showed crude oil inventory down 10.6 million barrels.
  • The Federal Open Market Committee made no changes to monetary policy. The federal funds rate target remains at 0% to 0.25% and there will be no change to asset purchases.

Across sectors, semiconductors and energy led gains. In the S&P 100, the following stocks led gains:

Small-cap stocks

In small caps, the Russell 2000 closed at 1,500.63 for a gain of 30.87 points or 2.10%. The S&P 600 closed at 877.44 for a gain of 22.03 points or 2.58%. The Dow Jones U.S. Small-Cap Growth Index closed at 10,540.38 for a gain of 223.92 points or 2.17%. The Dow Jones U.S. Small-Cap Value Index closed at 7,135.75 for a gain of 158.44 points or 2.27%.

Other notable indexes

Other notable index closes included the S&P 400 Mid-Cap Index at 1,888.71 for a gain of 39.97 points or 2.16%; the S&P 100 at 1,491.62 for a gain of 14.52 points or 0.98%; the Nasdaq 100 at 10,662.98 for a gain of 130.48 points or 1.24%; the Russell 3000 at 1,905.63 for a gain of 25.96 points or 1.38%; the Russell 1000 at 1,810.23 for a gain of 23.90 points or 1.34%; the Wilshire 5000 at 33,281.71 for a gain of 451.04 points or 1.37%; and the Dow Jones U.S. Select Dividend Index at 604.12 for a gain of 8.82 points or 1.48%.

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About the author:

Julie Young
Julie Young is a financial writer with comprehensive experience in the financial services industry. She writes about investments, investment products, financial market news and economic trends. Julie has a Master of Science in finance from Boston College and a Bachelor of Science in finance from the University of Arkansas.

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