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Jul 30 2015

The Fed acknowledges improvement in domestic economy

7/29/15 Market Recap: 

U.S. stocks rose on Wednesday, boosted after the Federal Reserve acknowledged improvement in the domestic economy but held off on raising interest rates. While many investors still expect the central bank’s first rate hike in about 10 years to come in 2015, the comments indicated that the Fed was willing to remain accommodative amid some potential market headwinds. Market participants are still closely watching the volatile Chinese market, which have dropped sharply in recent days, underlining concerns about the pace of global growth and the demand for commodities like oil and base metals. Separately, the second-quarter earnings season has contained some disappointments, with revenue down almost 4 percent from the year-ago period. However, there have been some bright spots, with General Dynamics (GD) rallying after its results on Wednesday. The session’s gains were broad, with all ten primary S&P 500 sectors higher on the day.

Looking Ahead: 

Futures are little changed on Thursday, with investors looking ahead to a read on second-quarter economic growth to add further context to the Fed’s comments on the economy from Wednesday. A couple of high-profile names could pressure the market, with both Facebook (FB) and Whole Foods Market (WFM) down after results that were reported after the market closed on Wednesday. Whole Foods dropped sharply as its earnings missed expectations. While Facebook’s profit was higher than anticipated, the growth was not seen as strong enough to justify the social media giant’s valuation following a year-to-date gain of more than 20 percent. Cigna (CI) and Time Warner Cable (TWC) are among the companies reporting on Thursday. On the economic data front, both the GDP data and weekly jobless claims will be released before the bell.

Make sure you don’t miss this week’s Money Matters with Gary Goldberg, Sunday at 11 AM on WOR 710 AM Radio. Visit our website for more details.