The U.S. market continued to report a steady stream of first-quarter earnings Monday with underwhelming results dragging on large-cap stocks.
On Monday, the Dow Jones Industrial Average closed below 18,000 at 17,977.24, a loss of 26.51 points or 0.15%. The Standard & Poor's 500 was also down for the day, closing at 2,087.79 for a loss of 3.79 points or 0.18%. Disappointing earnings were the primary drivers for the day’s lower valuations. Meanwhile, traders expect the Federal Reserve System to leave interest rates unchanged Wednesday, keeping volatility stable.
In the Dow Jones Industrial Average, McDonald’s (MCD, Financial) led the index higher with a gain of 1.56% after the company reported earnings results Friday that beat both revenue and earnings expectations for the first quarter. Revenue for the quarter was $5.9 billion, beating analysts’ expectations by $80 million –Â yet down 1% from the comparable quarter. Earnings beat analysts’ average estimate of $1.16 at $1.23 for the quarter.
On Tuesday and Wednesday the Federal Reserve holds its third meeting of the year. Market speculators do not expect the Federal Reserve to raise interest rates, likely keeping the rate at 0.25% to 0.50%. The Fed has not made a change in interest rates since its rate increase in December 2015. In December 2015 the Fed raised its federal funds rate from 0%. The pace of the Federal Reserve’s subsequent rate increases since December has slowed, but many economists do expect another rate increase in 2016.
In a CNBC interview Monday, market specialists discussed some of the key market catalysts for the day and what investors can expect from the Federal Reserve’s meeting this week.
