Despite starting the day with gains, U.S. equities couldn’t stay in positive territory and ended below the surface – even with the Fed’s announcement that they will not be hiking the interest rate which was widely expected. The Nasdaq closed out the session down 0.57% (45.75 points) despite being in the green for much of it. The S&P 500 also dropped toward the end of trading, sliding 0.75% (22.22 points) on the session. The Dow followed the same trend, slipping 0.62% (164.26 points).
While no Dow components reported earnings today, Apple (AAPL) released theirs after market close yesterday evening. The tech giant had a very positive report, beating estimates for its earnings per share. After iPhone sales took a tumble last quarter, the company managed to stop the bleeding by increasing sales in the service segment 16%. Apple helped boost the index by ending the day up 4.91%.
Unfortunately, that wasn’t enough to keep the Dow in the green for the day. Pulling in the opposite direction were several stocks that saw losses. Home Depot (HD) was one of these, sliding 2.41% by the time trade ended. Also tumbling today was Nike (NKE). They saw the value of their shares dip 2.22%.
Atossa Genetics (ATOS) went against the tide today, rising 0.67% to end the session at $3.01 per share.
The Fed stole the show today after releasing their latest monetary policy statement. As was expected, they decided not to change the interest rate again, leaving it at the current 2.25%-2.5%. Speaking at a press conference after the decision was announced, the chairman of the Fed, Jerome Powell, explained that the committee did not see a “strong case” for any action that would move the benchmark rate.
In their report, the Fed explained, “In determining the timing and size of future adjustments to the target range for the federal funds rate, the [FOMC] will assess realized and expected economic conditions relative to its maximum employment objective and its symmetric 2 percent inflation objective.”
Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.
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