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Business Insider
2 hours ago
- Business
- Business Insider
U.S. Stock Futures Rise on Meta, Microsoft Earnings Beat
U.S. stock futures edged higher Wednesday night, lifted by strong earnings from tech giants Microsoft (MSFT) and Meta Platforms (META). Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 Index (SPX) were up 1.13%, 0.77%, and 0.18%, respectively, at 8:33 p.m. EDT on July 30. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Microsoft and Meta, both members of the 'Magnificent Seven,' saw their shares rise 8% and 12%, respectively, in after-hours trading. MSFT surpassed revenue and earnings estimates easily and said that its annual revenue from its cloud computing service, Azure, crossed $75 billion. Similarly, Meta topped estimates and provided an optimistic third-quarter sales outlook that exceeded Street estimates. This positive after-hours session contrasted with Wednesday's regular trading session, in which the S&P 500 and the Dow Jones fell 0.12% and 0.38%, respectively. The Nasdaq Composite, however, managed a 0.15% gain. The market sentiment was influenced by the Fed Chair Jerome Powell's indications that the central bank is not yet prepared to cut interest rates. Looking ahead, investors are awaiting the June personal consumption expenditures (PCE) price index report on Thursday. Also, several companies are scheduled to report earnings tomorrow, such as Comcast (CMCSA), Apple (AAPL), Amazon (AMZN), Cigna (CI), CVS Health (CVS), AbbVie (ABBV), and Mastercard (MA).
NZ Herald
2 hours ago
- Business
- NZ Herald
NZ sharemarket down as Mainfreight, Infratil decline
Craigs Investment Partners investment director Mark Lister said Mainfreight's margins in particular were much lower than investors were expecting. 'It just looks like they've had a really tough start to the 2026 financial year. I think everyone knows and believes that it's a great business for the long term, but over the near term, meaning the next six months to 12 months, uncertainty is high,' Lister said. Craigs analysts also downgraded the business and said the short-term outlook was uncertain, but the firm liked the long-term growth potential of the business. Infratil also had a soft day, falling 3.08% to $11.63, on turnover worth $13.4m. Spark also traded on high turnover with the shares dipping 0.61% to $2.43. Meanwhile, Fisher and Paykel Healthcare rose 0.11% late in the day, lifting its share price to $36.80, as did Contact Energy, which was up 0.22% at $9.11. In the US overnight the Federal Reserve met today, with no change to interest rates. Lister said Jerome Powell was probably a little more hawkish than people were expecting. Tech giants Meta and Microsoft also both released strong results, with Microsoft's reporting profit of US$27.2 billion ($33.4b) because of its AI and cloud growth, while Meta beat expectations, reporting a revenue jump of 22% year-over-year to US$47.5 billion ($58.3b). 'All eyes will be on Amazon and Apple overnight tonight, and then you've got some really big economic releases on Friday in the US including the jobs report, which is a key one.' Overseas news Wall Street stocks finished mostly lower on Wednesday after the Federal Reserve kept interest rates flat and refrained from signalling it will soon cut interest rates. The Fed, as expected, held interest rates steady, despite relentless pressure from US President Donald Trump for an interest rate cut. In a press conference, Fed Chairman Jerome Powell emphasised future monetary policy decisions would depend on economic data. 'Powell sounded more hawkish than what markets were hoping for,' said Angelo Kourkafas of Edward Jones. Futures markets lowered their odds for a September interest rate cut following the press conference and statement, which included no major tweaks that would have implied an imminent interest rate cut. The Dow Jones Industrial Average finished down 0.4% at 44,461.28. The broad-based S&P 500 shed 0.1% to 6362.90, while the tech-rich Nasdaq Composite Index rose 0.2% to 21,129.67. Earlier, economic data showed the US economy returned to expansion in the second quarter, notching 3% growth after a contraction in the first quarter. But GDP in both quarters was heavily influenced by import activity in response to Trump's aggressive trade policy. – Additional reporting AFP Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
Business Insider
3 hours ago
- Business
- Business Insider
U.S. Stock Futures Up on Meta, Microsoft Earnings
U.S. stock futures inched higher on Wednesday evening, buoyed by robust earnings reports from tech giants Microsoft (MSFT) and Meta Platforms (META). Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 Index (SPX) were up 1.04%, 0.18%, and 0.72%, respectively, at 6:58 p.m. EDT on July 30. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Microsoft and Meta, both members of the 'Magnificent Seven,' saw their shares rise 8% and 12%, respectively, in after-hours trading. MSFT surpassed revenue and earnings estimates easily and said that its annual revenue from its cloud computing service, Azure, crossed $75 billion. Similarly, Meta topped estimates and provided an optimistic third-quarter sales outlook that exceeded Street estimates. This positive after-hours session contrasted with Wednesday's regular trading session, in which the S&P 500 and the Dow Jones fell 0.12% and 0.38%, respectively. The Nasdaq Composite, however, managed a 0.15% gain. The market sentiment was influenced by the Fed Chair Jerome Powell's indications that the central bank is not yet prepared to cut interest rates. Looking ahead, investors are awaiting the June personal consumption expenditures (PCE) price index report on Thursday. Also, several companies are scheduled to report earnings tomorrow, such as Comcast (CMCSA), Apple (AAPL), Amazon (AMZN), Cigna (CI), CVS Health (CVS), AbbVie (ABBV), and Mastercard (MA).
Business Recorder
5 hours ago
- Business
- Business Recorder
Fed leaves rates steady despite Trump pressure, gives no hint of September cut
WASHINGTON: The US central bank held interest rates steady on Wednesday and Federal Reserve Chair Jerome Powell's comments after the decision undercut confidence that borrowing costs would begin to fall in September, possibly stoking the ire of President Donald Trump who has demanded immediate and steep rate relief. Powell said the Fed is focused on controlling inflation - not on government borrowing or home mortgage costs that Trump wants lowered - and added that the risk of rising price pressures from the administration's trade and other policies remains too high for the central bank to begin loosening its 'modestly restrictive' grip on the economy until more information is collected. While there will be two full months of data before the Fed's September 16-17 meeting, Powell said the central bank was still in the early stages of understanding how Trump's rewrite of import taxes and other policy changes will unfold in terms of inflation, jobs and economic growth. 'You have to think of this as still quite early days,' Powell said in a press conference after the release of the Fed's latest policy statement. 'There's quite a lot of data coming in before the next meeting. Will it be dispositive? … It is really hard to say.' Those comments, and others that placed the burden on upcoming data to convince policymakers that lower rates were warranted, led investors to reduce the probability of a rate cut in September to less than 50%, after entering this week's two-day Fed meeting at nearly 70%. Treasury yields rose while the S&P 500 and Dow Jones Industrial Average equities indexes closed marginally lower. Powell 'made clear that he thinks the Fed has room to hold the fed funds rate steady for a period of time and wait and see how much tariffs affect inflation,' said Bill Adams, chief economist at Comerica Bank, projecting that the central bank won't cut rates until its last meeting of the year in December. 'If the unemployment rate holds steady and tariffs push up inflation, it will be hard to justify a rate cut in the next few months.' The latest policy decision was made by a 9-2 vote, what passes for a split outcome at the consensus-driven central bank, with two Fed governors dissenting for the first time in more than 30 years. Trump has given Powell the pejorative nickname 'Too Late' for his refusal to cut rates, but the Fed chief on Wednesday said his hope was to be right on time when the decision is made to lower borrowing costs, neither moving so soon that inflation reemerges, or waiting so long that the job market slides and the unemployment rate rises. Indeed, Powell said the fact that the Fed isn't discussing rate hikes could be seen as a willingness to overlook some of the expected impact of tariffs. Trump to visit Federal Reserve on Thursday, White House says 'If you move too soon, you wind up not getting inflation all the way fixed … That's inefficient,' Powell told reporters. 'If you move too late, you might do unnecessary damage to the labor market … In the end, there should be no doubt that we will do what we need to do to keep inflation controlled. Ideally, we do it efficiently.' The data since the Fed's June 17-18 meeting has given policymakers little reason to shift from the 'wait-and-see' approach they have taken on interest rates since Trump's January 20 inauguration raised the possibility that new import tariffs and other policy shifts could put upward pressure on prices. Inflation is about half a percentage point above the Fed's 2% target and has shown signs of increasing as prices of some heavily imported goods begin to rise, a process Powell said is expected to continue. As of June, Fed policymakers at the median expected inflation to rise further and end the year at about 3%. New inflation data for June will be released on Thursday, and a key jobs report for the month of July will follow on Friday, part of the data Powell said policymakers will evaluate as they debate a possible rate cut in September. Earlier on Wednesday, the U.S. government reported that economic growth rebounded more than expected in the second quarter, but declining imports accounted for the bulk of the improvement and domestic demand rose at its slowest pace in 2-1/2 years. 'Thoughtfully argued' Along with Powell's comments, the Fed's new policy statement also gave little hint that rates were likely to fall soon, particularly with an unemployment rate that has stabilized around 4% as weaker hiring trends are offset by slowing growth in the labor force due to Trump's immigration policies. 'The unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated,' the central bank said after voting to keep its benchmark overnight interest rate steady in the 4.25%-4.50% range for the fifth consecutive meeting. The two dissents came from Fed Vice Chair for Supervision Michelle Bowman and Governor Christopher Waller, who has been mentioned as a possible nominee to replace Powell when the Fed chief's term expires next May. Bowman and Waller, both appointed to the board by Trump, 'preferred to lower the target range for the federal funds rate by one quarter of a percentage point at this meeting,' the Fed's policy statement said. Powell characterized their opposition to the policy decision as part of a debate that was 'argued, very thoughtfully … all around the table,' but with a majority of policymakers still reluctant to cut rates without more inflation data in hand. Trump says Fed's Powell will be out in 8 months, calls him a 'numbskull' A bipartisan figure who was appointed to the Fed's board by former President Barack Obama and later promoted to the top job by Trump, Powell voted to hold rates steady, as did three other governors and the five Fed regional bank presidents who currently hold a vote on the FOMC. The Fed's regional bank presidents are hired by local boards of directors who oversee the Fed's 12 regional institutions. Governor Adriana Kugler was absent and did not vote.
Economic Times
5 hours ago
- Business
- Economic Times
US equities retreat as Powell dampens Fed Sept cut hopes
U.S. stocks closed well off earlier highs after a choppy session on Wednesday, as Federal Reserve Chair Jerome Powell chilled expectations the central bank might be poised to cut rates at its September meeting. ADVERTISEMENT In keeping rates unchanged, as was widely expected, the central bank said "the unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated," in a split decision that saw two governors dissent. Stocks were modestly higher before the Fed statement as investors assessed the first reading of second-quarter economic growth, which was stronger than expected, but underlying details indicated an economy that was likely losing strength. However, stocks retreated after Powell said it was too soon to say whether the Fed would cut rates at its next meeting in September and noted that current policy was modestly restrictive but has not been holding back the economy. "There wasn't too much of a change in the statement here, still showing concerns about how these tariff policies will come through and probably yet to rely on the data that's come through, you can see that just in the GDP report, how much noise is going on in each of these releases right now," said JP Powers, chief investment officer at RWA Wealth Partners in Boston. "If I were Powell, I don't know how much he thinks about his legacy, but I think he's going to err on the side of probably being too late to cut rates here on his way out rather than risk any flare-up just as he's heading off into the sunset." ADVERTISEMENT The Dow Jones Industrial Average fell 171.71 points, or 0.38%, to 44,461.28, the S&P 500 lost 7.96 points, or 0.12%, to 6,362.90 and the Nasdaq Composite gained 31.38 points, or 0.15%, to 21,129.67. The S&P had risen as much as 0.4% on the session before fading. After market expectations for a September rate cut climbed to about 68% following the Fed statement, they fell below 50% in the wake of Powell's comments, according to the LSEG data. ADVERTISEMENT Earlier data in the ADP employment report showed private payrolls grew by 104,000 in July, topping forecasts of 75,000, the latest in a string of labor market data this week before Friday's government payrolls report. Megacap companies Microsoft and Meta Platforms were both up more than 6% in extended trade after reporting quarterly results while investors were still awaiting earnings from Amazon and Apple on Thursday. The recent batch of corporate earnings initially helped buoy equities, with Teradyne surging 18.9% as one of the best performers on the S&P 500 after its quarterly results. ADVERTISEMENT Solid earnings from a host of consumer-facing names also put the resilience of shoppers on display. Starbucks posted better-than-expected third-quarter sales, although its shares edged down 0.2%, while Hershey gained 1.4% after the chocolate and snacks company reported results that topped forecasts. VF Corp, parent of Vans, beat quarterly revenue estimates and closed up 2.6%. ADVERTISEMENT Still, the tariff overhang remained, as President Donald Trump said the U.S. would impose a 50% tariff on copper pipes and wiring, although that fell short of the more draconian measures expected, and excluded copper input materials such as ores, concentrates and cathodes. The tariff weighed heavily on the S&P 500 materials sector, which fell 2%, as Freeport-McMoRan shares tumbled 9.5%. Declining issues outnumbered advancers by a 2.52-to-1 ratio on the NYSE, while advancing issues outnumbered decliners by a 2.05-to-1 ratio on the Nasdaq. The S&P 500 posted 31 new 52-week highs and 15 new lows, while the Nasdaq Composite recorded 73 new highs and 104 new lows. Volume on U.S. exchanges was 17.66 billion shares, compared with the 17.87 billion average for the full session over the last 20 trading days. (You can now subscribe to our ETMarkets WhatsApp channel)
