By Anora Mahmudova and Victor Reklaitis, MarketWatch
Twitter shares plunge after results; Facebook to report after
close
U.S. stocks climbed Wednesday and the main stock-market indexes
were hovering near records, as a jump in Apple's shares helped to
deliver a positive jolt to investor sentiment.
Market gains were kept in check, however, as investors waited
for a Federal Reserve statement due at 2 p.m. Eastern Time.
The S&P 500 index gave up opening gains and was flat at
2,168, with the technology stock leading gains, up 0.8%. A sharp
drop in consumer staples and utilities, down 1.3% and 1%
respectively weighed on the index, however.
The Dow Jones Industrial Average climbed 23 points, or 0.1% to
18,495. The Nasdaq Composite Index jumped 26 points, or 0.5%, to
5,136.
Apple shares (AAPL) soared more than 7% after the iPhone maker
late Tuesday posted quarterly profit that dropped from a year ago,
but beat expectations
(http://www.marketwatch.com/story/apple-earnings-weighed-down-by-iphone-slump-2016-07-26-16485385).
Revenue at the world's largest company by market value also fell,
yet topped Wall Street's forecasts.
"Apple is not just a tech company, it is also a consumer
discretionary. It represents a pulse for consumer demand," said
Diane Jaffee, senior portfolio manager at TCW.
Read:iPhone SE, iPad Pro throw new wrinkle into Apple finances
(http://www.marketwatch.com/story/iphone-se-ipad-pro-throw-new-wrinkle-into-apple-finances-2016-07-26)
And:Analysts upbeat on Apple as 'toughest two quarters' now
behind it
(http://www.marketwatch.com/story/apples-earnings-analysts-upbeat-as-toughest-two-quarters-now-behind-it-2016-07-27)
On the Fed front, the U.S. central bank is expected to stand pat
on interest rates as it releases a policy statement later this
afternoon. Traders want to see if Fed Chief Janet Yellen and her
colleagues offer any signals on the possibility of a September rate
hike
(http://www.marketwatch.com/story/what-to-expect-in-the-fed-statement-next-week-2016-07-22).
Read:Why the Fed may want to take away the stock market's punch
bowl
(http://www.marketwatch.com/story/why-the-fed-may-want-to-lurch-for-the-punch-bowl-2016-07-26)
"The Fed walks a delicate line. We anticipate hawkish talk, no
action, as the Fed would like to bring up expectations of a rate
hike in light of better economic data in the U.S. and as Europe is
not showing utter disaster," Jaffee said.
The key is whether the Fed's statement will "build expectations
of a hike in the second half of the year or deliver a more dovish
message highlighting the heightened risks, including Brexit," said
Craig Erlam, senior market analyst at Oanda, in a note.
"As it stands, the markets have once again come around to the
idea that there will be another hike this year, pricing in a 51%
chance of it happening by December," Erlam said.
Other markets: Oil futures rebounded and were trading higher.
European stocks were higher while Asian markets were mixed--with
the Nikkei up 1.7%, but Shanghai down 1.9%--as investors digested
conflicting reports
(http://www.marketwatch.com/story/dollar-rises-against-yen-amid-conflicting-reports-about-japan-stimulus-2016-07-27)
about the Japanese government's soon-to-be-released stimulus
measures. Gold futures edged higher, while the ICE U.S. Dollar
Index was slightly higher.
Economic news: Market reaction to disappointing durable-goods
orders
(http://www.marketwatch.com/story/us-durable-goods-orders-sink-4-in-june-biggest-drop-in-almost-two-years-2016-07-27)was
muted. Orders for durable or long-lasting goods made in the U.S.
sank 4% in June, much more than a 1.7% drop expected by economists
polled by MarketWatch.
At 10 a.m. Eastern, investors will take a look at a report on
pending home sales, a day after new home sales figures showed a
considerable jump in June.
Individual movers: Shares in Twitter Inc.(TWTR) fell 12% after
the social media company's disappointing earnings report late
Tuesday
(http://www.marketwatch.com/story/analog-devices-agrees-to-148-billion-deal-for-linear-technology-2016-07-26).
Goodyear Tire & Rubber Co(GT) jumped 3.6% after the company
beat earnings estimates.
Linear Technology Corp.(LLTC) dropped 3.5% after Analog Devices
Inc.(ADI) on Tuesday announced it would acquire its fellow chip
maker
(http://www.marketwatch.com/story/analog-devices-agrees-to-148-billion-deal-for-linear-technology-2016-07-26)
in a cash-and-stock deal worth $14.8 billion.
Coca-Cola Co.(KO) shares slid 2.8% after the drinks giant posted
weaker-than-expected quarterly sales
(http://www.marketwatch.com/story/coca-cola-shares-fall-after-sales-miss-estimates-2016-07-27),
while Boeing Co.(BA) gained 2.3% following a
smaller-than-anticipated quarterly loss
(http://www.marketwatch.com/story/boeing-shares-climb-after-smaller-than-expected-second-quarter-loss-2016-07-27).
Mondelez International Inc
(http://www.marketwatch.com/story/mondelez-shares-fall-after-sales-miss-estimates-2016-07-27).(MDLZ)
shares fell 0.3% after the food giant reported second-quarter sales
that missed estimates.
Comcast Corp.(CMCSA) shares were slightly lower even as its
results beat forecasts
(http://www.marketwatch.com/story/comcast-revenue-beats-as-video-subscribers-improve-2016-07-27).
Facebook Inc.(FB) and Whole Foods Market Inc. (WFM) are among
those due to report after the market's close.
Read earnings previews for Facebook
(http://www.marketwatch.com/story/what-to-expect-when-facebook-reports-earnings-2016-07-25)
and
(http://www.marketwatch.com/story/what-to-look-for-in-comcast-earnings-2016-07-26)Whole
Foods
(http://www.marketwatch.com/story/what-to-watch-for-in-whole-foods-earnings-2016-07-26).
(END) Dow Jones Newswires
July 27, 2016 10:30 ET (14:30 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.