Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average edged up late in the session Tuesday, finishing modestly higher as the Federal Reserve’s two-day meeting kicked off Tuesday.
- FedEx (FDX) is scheduled to report quarterly earnings after the closing bell Tuesday. FedEx is Real Money’s Stock of the Day.
Kraft Heinz ( KHC) shares declined after one of its biggest shareholders disclosed that it has again trimmed its stake in the food company.
Wall Street Overview
Stocks finished up Tuesday as oil prices fell on expectations that Saudi Arabia will be able to restore most of its oil production faster than expected following a weekend drone attack and as the Federal Reserve’s two-day rate-setting meeting began.
The Dow Industrial Average, which had been most of the day, edged into positive territory late in the session to finish up 34 points, or 0.13%, to 27,111, the S&P 500 rose 0.26%, and the Nasdaq advanced 0.40%.
Brent crude contracts were down $4.53 to $63.15 a barrel, while West Texas Intermediate contracts, which are more tightly linked to U.S. gas prices, were down $3.80 to $59.10 a barrel.
Fed-watchers will focus on what Federal Reserve Chairman Jerome Powell has to say at his press conference Wednesday about further easing. Powell likely will reiterate that the central bank will act as appropriate to sustain the expansion of the U.S. economy, especially in light of the intensifying, 14-month trade war between the U.S. and China.
Market sentiment remains affected by the uncertainty on trade as negotiators from Washington and Beijing prepare to meet later this week for talks that will pave the way toward higher-level negotiations in October.
“This type of price spike in oil assures any doubters – not that there were too many – that the Fed would not cut rates,” Flynn said. “Obviously, this added uncertainty in the market is probably going to keep the Fed from sounding too hawkish because they realize they may have to react if there’s increasing tensions in the global energy market.”
In economic news, industrial production rose 0.6% in August, the largest increase in a year, the Federal Reserve said. Output in July was revised to a 0.1% decline from the prior estimate of a 0.2% slide.
FedEx (FDX) is scheduled to report quarterly earnings after the bell on Tuesday. The package delivery company is expected to report adjusted earnings of $3.16 a share on sales of $17.1 billion. Shares were off slightly to $173.55. FedEx is Real Money’s Stock of the Day.
Shares of Boeing (BA) were up 1.4% to $384.20 after the aerospace giant lifted its forecast for aircraft demand in China, the world’s biggest market, amid ongoing questions over the return of its troubled 737 MAX jet, which remains grounded following two deadly crashes in March 2019 and November 2018 that took the lives of 346 passengers.
Kraft Heinz (KHC) declined 4.3% to $28.36 after 3G Capital Partners, one of its biggest shareholders, disclosed that it has again trimmed its stake in the food company.