By Anora Mahmudova and Victor Reklaitis, MarketWatch
Twitter, Yelp dive; Gilead jumps
U.S. benchmarks moved higher Wednesday ahead of the statement
from the Federal Reserve's policy-setting meeting due to be
released this afternoon.
But investors were punishing shares of Twitter Inc. and Yelp
Inc. in the wake of disappointing earnings and outlooks delivered
after Tuesday's closing bell.
The S&P 500 was 9 points, or 0.5%, higher at 2,102. The Dow
Jones Industrial Average rose 88 points, or 0.5%, to 17,717.09.
Weakness in Yelp and Twitter didn't stop the tech-heavy Nasdaq
Composite from gaining 11 points to 5,101.
The U.S. central bank is wrapping up a two-day meeting and will
release a brief statement at 2 p.m. Eastern Time. No news
conference has been scheduled.
While the Fed is unlikely to tip its hand about whether it will
raise interest rates at its September meeting, investors
nonetheless will read its latest policy statement closely.
"A July rate hike looks unlikely, but a September liftoff
appears to be well on the way to being priced into currency
markets, so any hints that come out of the statement could have a
significant impact on trading," said Colin Cieszynski, chief market
strategist at CMC Markets, in a note late Tuesday.
See: Fed seen staying mum
(http://www.marketwatch.com/story/fed-seen-staying-mum-but-second-quarter-gdp-report-pencils-out-as-game-changer-2015-07-26)
Investors focused on earnings reports, which so far have been a
mixed bag.
"We've had some good earnings reports today and transports
stocks are rising for the second day in a row, no doubt thanks to
UPS profits. We view that as a positive," Peter Cardillo, chief
market economist at Rockwell Global Capital.
"While the market has been stuck in the range, many individual
stocks have already corrected. Unless and until the S&P 500
breaks through the support or resistance levels, there is not much
chance for an upside or the downside," Cardillo said.
In other U.S. economic news, a gauge of pending home sales fell
in June
(http://www.marketwatch.com/story/pending-home-sales-fall-18-in-june-2015-07-29-109104),
pulling back from May's reading, which was the highest in more than
nine years, a trade group said Wednesday.
Movers & Shakers: Citrix Systems Inc. (CTXS) was the biggest
gainer among S&P 500 stocks, jumping 7% after the software
company's adjusted quarterly profit and revenue topped expectations
late Tuesday
(http://www.marketwatch.com/story/citrix-systems-ceo-mark-templeton-to-retire-2015-07-28-174854715).
Citrix also announced the retirement of its long time chief
executive, Mark Templeton.
Twitter Inc. (TWTR) plunged 12% in the wake of its earnings
report late Tuesday, as investors focused on the social-media
company's disappointing user growth
(http://www.marketwatch.com/story/twitter-revenue-jumps-user-growth-disappoints-2015-07-28).
Yelp Inc. (YELP) lost more than a quarter of its market value after
a quarterly report
(http://www.marketwatch.com/story/yelp-chops-forecast-chairman-to-step-down-2015-07-28)
that dismayed investors.
Gilead Sciences Inc. (GILD) rose 3.8% after the biotech company
late Tuesday posted adjusted quarterly profit and revenue that beat
forecasts
(http://www.marketwatch.com/story/gilead-rallies-after-earnings-beat-wall-streets-expectations-2015-07-28).
Altria Group Inc. (MO) advanced after posting
better-than-expected quarterly results
(http://www.marketwatch.com/story/altrias-stock-rallies-after-profit-sales-rise-above-expectations-2015-07-29)
before the open, while Humana Inc. (HUM) reported quarterly profit
and revenue that missed Wall Street's forecasts
(http://www.marketwatch.com/story/humana-misses-profit-sales-expectations-2015-07-29).
After the closing bell, Whole Foods Market Inc. (WFM) and
Facebook Inc. (FB) results are due.
Read more: MasterCard, Facebook, Humana earnings in focus
(http://www.marketwatch.com/story/mastercard-facebook-humana-earnings-in-focus-2015-07-28)
Other markets: Chinese stocks mostly closed higher Wednesday,
with the Shanghai Composite up 3.4% and recovering partly from
Monday's 8.5% slide
(http://www.marketwatch.com/story/china-stocks-remain-weak-as-investors-focus-on-the-fed-2015-07-29)
that helped spark a global selloff. But the gains baffled many
analysts, who suspected Chinese government buying. European
equities on Wednesday mostly gained ground
(http://www.marketwatch.com/story/european-stocks-step-up-as-investors-wait-for-fed-2015-07-29).
Crude-oil prices dropped, while gold and the dollar
(http://www.marketwatch.com/story/dollar-holds-steady-against-yen-euro-ahead-of-fomc-2015-07-29)
were little changed.
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