Stocks bouncing back in morning trade ahead of Fed, big tech antitrust hearing
The major averages are rebounding this morning ahead of two highly anticipated events later today - the conclusion of the Fed's rate setting meeting and the U.S. House of Representatives hearing with the CEOs of Google (GOOG), Amazon (AMZN), Apple (AAPL) and Facebook (FB). That antitrust hearing will be a prelude before the four tech titans all report on their quarterly results after tomorrow's closing bell.
ECONOMIC EVENTS: In the U.S., the advance goods trade deficit narrowed to $70.6B in June from $75.3B in May. An index of pending home sales climbed 16.6% to 116.1 in June.
When the FOMC announces its rate decision at 2 pm ET, the focus will be on any nuances in the statement and Chair Powell's press conference that follows, since no changes are expected to the policy stance.
The latest data from the Johns Hopkins Whiting School of Engineering shows there are now 16.8M confirmed cases of COVID-19 worldwide, including 4.36M in the U.S., and 661,349 deaths due to the disease.
TOP NEWS: Shares of Boeing (BA) are 4% lower near noon after the company reported lower than expected revenue and steeper than expected losses in the second quarter. "To align to the sharp reduction in commercial market demand in light of COVID-19, the company is taking several actions including further adjusting commercial airplane production rates and reducing employment levels.
Shares of General Motors (GM) and (GE) are both lower as well, falling 3% and 5%, respectively, following their mixed earnings reports. The automaker reported better than expected losses on worse than expected sales, while the diversified industrial products maker posted better revenue than forecast with worse than expected losses.
In other large cap earnings news, Starbucks (SBUX) is 4% higher following its report last night, while Visa (V) shares have slipped fractionally.
MAJOR MOVERS: Among the noteworthy gainers was AMD (AMD), which rose 13% after it reported better than expected Q2 results and provided upbeat Q3 and FY20 revenue guidance.
Also higher after reporting quarterly results were Tupperware Brands (TUP), Community Health (CYH), and Shopify (SHOP), which gained a respective 57%, 11%, and 9%.
Among the notable losers was Alector (ALEC), which slid 29% after it reported preliminary data from its AL001 Phase 1b and Phase 2 studies.
Also lower were Seagate (STX), Imax (IMAX), and Spotify (SPOT), which fell 10%, 9%, and 2%, respectively, after reporting quarterly results.
INDEXES: Near midday, the Dow was up 64.85, or 0.25%, to 26,444.13, the Nasdaq was up 90.29, or 0.87%, to 10,492.38, and the S&P 500 was up 22.86, or 0.71%, to 3,241.30.