The Dow Jones Industrial Average fell 0.4% at the close on Wednesday after the release of the Federal Reserve’s meeting minutes for its June meeting. The other index also fell modestly.
X
Fed policymakers believe that “in discussing the policy outlook, all participants continued to expect that with inflation still well above the committee’s 2% target and the labor market remaining very tight, maintaining a restrictive stance on monetary policy would be adequate to achieve the committee’s goals. “
Some Fed officials favored raising interest rates at the June meeting, when the central bank decided to leave interest rates unchanged.
The Dow Jones average and other indices fell earlier on news of slowing economic recovery in China. Chinese stocks traded in the US were broadly lower.
The S&P 500 fell 0.2%, while the Nasdaq rose from today’s low but also closed 0.2% lower. Trading volume on the New York Stock Exchange and Nasdaq was higher, according to preliminary data.
Small cap Russell 2000 down 1.3% and Innovator IBD 50 ETF (fifty) decreased by more than 0.8%.
New US orders for manufactured goods rose to $578 billion, rising for the fifth month out of the past six.
Crude oil jumped more than 3% to trade at $71.99 a barrel. The yield on the benchmark 10-year Treasury note rose 9 basis points, to 3.94%.
Dow focus on stocks
Wedbush analysts see Dow Jones leader Microsoft (MSFT) reach a market cap of US$3 trillion as early as 2024 thereafter apple (AAPL) achieved this feat last week. MSFT shares were nearly flat on Wednesday. Analysts have an outperform rating on the stock and a price target of 375.
Rivian (countryside) rose in strong volume following bullish comments from analysts. RIVN added to Monday’s 17% gain and attempted to take the 200-day line. Rivian also got an analyst upgrade from DA Davidson to neutral with an 18 price target, up from underperforming and a price target of 11. Needham raised the price target on Rivian as well.
last Tesla (TSLA) competition, Xpeng (XPEV), up nearly 6% in strong volume terms after the company said its G6 SUV would drive demand in the second half of the year.
general motors (GM) rose by 1.2% as it forms the base of a cup with an entry of 43.63. US sales in the second quarter increased by 18.8%. Electric vehicle sales showed strong growth from the first quarter.
On Wednesday, Tesla announced further price cuts for its Model 3 and Y in Japan in the mid-single digits. Tesla’s earnings are due on July 19, when the impact of price cuts will be felt on profit margins, despite record deliveries in the second quarter. Tesla shares rose 1% on Wednesday. EV giant on IBD Leaderboard.
Futures: flash buy signals from Titans; Meta leads for you to take on Twitter
Stocks are moving today
defect 50 stock Allegro Micro Systems (ALGM) softened by 1.5% and is at the base of a teacup with an entry of 48.72. If a handle forms, it could offer a lower entry at 46.42, according to IBD MarketSmith chart analysis.
Netflix (NFLX) rose 1% after Goldman Sachs upgraded the streaming company to neutral from a sell and increased its price target to 400, from 230. The stock is above profit-taking territory.
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