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Dow Jumps as Powell Says Fed 'Not Even Thinking' About Raising Rates

Stock Markets Jul 29, 2020 04:08PM ET
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By Yasin Ebrahim

Investing.com – The Dow closed higher on Wednesday after the Federal Reserve left interest rates unchanged and chairman Jerome Powell declared the central bank was "not even thinking about raising rates."  

The Dow Jones Industrial Average rose 0.61%, the Nasdaq Composite gained 1.35% and the S&P 500 added 1.25%.

The Fed kept its benchmark rate near zero and suggested rates would remain in this range "until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals." 

"The economy will need high levels of accommodative monetary policy for an extended period," he added.

The dovish tone on monetary policy comes investors digested a slew of mixed earnings from corporates.

Heavyweight Dow component Boeing (NYSE:BA) fell 2.9% after reporting mixed quarterly results. The aircraft maker reported wider-than-expected quarterly losses and warned it would trim production amid weakness in the aviation sector.

Shopify Inc (NYSE:SHOP) fared better, rallying 6.6% as the e-commerce company delivered blowout second-quarter results, with earnings and revenue topping analysts' consensus estimates.

Starbucks (NASDAQ:SBUX) climbed 3.7% as it raised its earnings outlook for the year after reporting a smaller-than-expected loss in the fiscal third-quarter.

General Electric (NYSE:GE) posted a bigger-than-expected quarterly loss as its performance was hurt by weakness in its jet-engine business, sending its shares more than 4.3% lower.  

Tech held onto gains as Facebook (NASDAQ:FB), Alphabet (NASDAQ:GOOGL), Amazon.com (NASDAQ:AMZN), Microsoft and Apple  (NASDAQ:AAPL) provided testimony in a congressional hearing on antitrust in Big Tech. The sector was also helped by a surge in chip stocks, led by a 12.6% pop in Advanced Micro Devices (NASDAQ:AMD) as the chipmaker raised its revenue guidance and beat quarterly earnings estimates.   

Energy, meanwhile, was helped by a rise in oil prices following data showing U.S. stockpiles unexpectedly declined by more than 10 million barrels last week.

In other news, Eastman Kodak Co (NYSE:KODK) jumped 318% after the company's received a federal cash injection to produce ingredients needed for generic drugs as President Donald Trump further efforts to lower drug prices.

Dow Jumps as Powell Says Fed 'Not Even Thinking' About Raising Rates
 

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Comments (15)
Aristotle Onassis
AristotleOnassis Jul 29, 2020 9:26PM ET
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Algos didnt pick up his words.... hmmmmm
Tricky Dick
TrickyDick Jul 29, 2020 8:13PM ET
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Powell Says Fed 'Not Even Thinking' About Raising Rates? Really? Were there "investors" out there that were holding back until they got confirmation on this? What a rubbish headline.
Norm Norm
Norm Norm Jul 29, 2020 7:17PM ET
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I see GOLD people.  4k like the TV
Mart Ltv
MartLtv Jul 29, 2020 7:17PM ET
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haha
Hol volt Hol nem volt
Hol volt Hol nem volt Jul 29, 2020 6:41PM ET
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does the fed have actual reserve what can be used for emergencies?
Gamer Turtle
GamerTurtle Jul 29, 2020 6:41PM ET
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its balance sheet doesn't have a limit, so infinity - 7 trillions = infinity. lol
José Yanguas
José Yanguas Jul 29, 2020 6:12PM ET
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Raising interest rates!! Are we crazy??? As if the markets had been raising non-stop for 8 years in a row in an overheated over indebted economy!I think we should go negative to see if we add a little joy to these depressed stock markets
Picaso Fish
Picaso_Fish Jul 29, 2020 6:12PM ET
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your nutz
Russ Green
Russ Green Jul 29, 2020 6:12PM ET
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Picaso Fish If you didn’t see the sarcasm, you’re nuts to
Adrian Wooldridge
Adrian Wooldridge Jul 29, 2020 5:43PM ET
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These headlines are so misleading. He said all the same things last month and we had an 1800 point drop. Theres bo ryme ir reason to this market. We have so many rookies who dont know the way it works and thats not intended to be an insult.
Muthanna Akram
Muthanna Akram Jul 29, 2020 5:32PM ET
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correction: not thinking about thinking about thinking about raising rates!
Chris Sundo
Chris Sundo Jul 29, 2020 5:09PM ET
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LOL, the heading shows how vastly s c r e w e d up the media misreports reality, -- Dow Jumps as Powell Says Fed 'Not Even Thinking' About Raising Rates -- HAHA, LOL. And the market takes it accordingly. Mass fraud by the market curtesy of donald tramp.
Frederick Chotsky
Chotsky Jul 29, 2020 5:09PM ET
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Sorry, just clarifying here .. the media is reporting fake news, and it's Trump's fault?
Jay Fernandez
Jay Fernandez Jul 29, 2020 5:03PM ET
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Coin up
Dwi Randhy
Zenwave Jul 29, 2020 4:51PM ET
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just buy all pair againts usd ... buy buy buy
john doe
batman876 Jul 29, 2020 4:51PM ET
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yeah, leave the weird stocks alone.
 
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