By Anora Mahmudova and Victor Reklaitis, MarketWatch
Twitter, Yelp dive; Gilead jumps
U.S. stock benchmarks advanced Wednesday, driven by gains in the
energy, industrials and transportations stocks, while investors
waited for the statement from the Federal Reserve's policy-setting
meeting due this afternoon.
Companies reporting earnings on Tuesday after the market close
and Wednesday morning, delivered a mixed bag of results. Investors
rewarded Gilead Sciences Corp. and Citrix Systems Inc. for topping
estimates but punished Twitter Inc. and Yelp Inc. in the wake of
disappointing outlooks.
The S&P 500 was 11 points, or 0.6%, higher at 2,104, with
nine of its 10 main sectors trading higher. A jump in oil prices
provided support to energy stocks, while telecoms and industrials
also rallied. The Dow Jones Industrial Average rose 109 points, or
0.6%, to 17,739.09.
Tech-heavy Nasdaq Composite underperformed other benchmarks,
weighed down by declines in Twitter and Yelp, which limited gains
for the index. Nasdaq was up 13 points, or 0.3%, to 5,102.
"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.
Investors also focused on the Federal Reserve, as it 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)
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 9% 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 4% 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).
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 rebounded, rising nearly 3% to $48.28, 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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