Stocks were little changed in morning trading as investors await the end of the latest Federal Reserve meeting. There is growing anticipation that the central bank will signal a readiness to lower rates, though few are predicting that a rate cut is coming this afternoon.
ECONOMIC EVENTS: In the U.S., the MBA reported that mortgage applications declined 3.4% in the week ended June 14. The Federal Reserve's FOMC resumed its two-day meeting and will announce its policy decision at 2 pm ET, followed by Chairman Jerome Powell's press conference at 2:30 pm ET.
TOP NEWS: After Facebook (FB) released a white paper yesterday on its new Libra cryptocurrency payment system, reports last night indicated that House Financial Services Committee chairwoman Maxine Waters is calling on the company to suspend development and allow Congress and regulators to review its plans. The congresswoman expressed concerns that "Facebook has data on billions of people and has repeatedly shown a disregard for the protection and careful use of this data", Reuters reported.
Several Wall Street analysts raised their price targets on Adobe (ADBE) after its Q2 results, including BMO Capital analyst Keith Bachman, who said the company delivered a "very strong quarter" despite the challenging macro backdrop and the concerns around the impact of higher marketing costs. Stephens analyst James Rutherford upgraded Adobe to Overweight from Equal Weight and raised his target on the stock to $327 from $288 after the company's revenue and EPS beats, citing his view that strong Digital Media results will help quiet investor worries about a near-term slowdown.
MAJOR MOVERS: Among the noteworthy gainers was Axalta Coating (AXTA), which rose 14.5% after announcing plans to review its strategic alternatives. Also higher was Jabil Circuit (JBL), which gained 9% after reporting quarterly results.
Among the notable losers was Green Plains (GPRE), which fell 10% after it announced the suspension of its quarterly cash dividend. Also lower was Energizer (ENR), which slid 6% after JPMorgan analyst Andrea Teixeira downgraded the stock to Underweight from Neutral.
INDEXES: Near midday, the Dow was up 47.90, or 0.18%, to 26,513.44, the Nasdaq was up 2.91, or 0.04%, to 7,956.79, and the S&P 500 was up 1.30, or 0.04%, to 2,919.05.
Ticker changed to META
-2.51 (-1.33%)
Adobe
+13.49 (+4.87%)
Axalta Coating
+3.79 (+14.68%)
Jabil
+2.625 (+9.61%)
Green Plains
-1.22 (-9.78%)
Energizer
-2.46 (-5.89%)