U.S. stocks opened modestly higher on Wednesday, continuing their recent rebound from a two-week selloff. Investors waited for the outcome of the latest Federal Reserve meeting and a blockbuster software initial public offering backed by
Warren Buffett’s Berkshire Hathaway.
It’s the first of several major tech IPOs this week.
Dow Jones Industrial Average
was up 77 points, or 0.3%, on Wednesday morning. The
also added 0.3% and the
The last Federal Open Market Committee meeting before the U.S. presidential election concludes on Wednesday afternoon. Chairman Jerome Powell will hold a closely watched press conference after the central bank’s decision is announced.
Economists expect the Fed to signal interest rates will remain unchanged and close to zero through the end of 2023. The Fed will release 2023 economic forecasts for the first time.
“While there is little doubt that rates are very likely to remain low for a prolonged period of time, market participants are keen to gather further insights about the Fed’s recently announced strategy change,” said Milan Cutkovic, market analyst at AxiCorp
“The shift to an average inflation target will allow inflation to overshoot the 2% target to compensate for persistently low inflation, and permit the central bank to keep the stimulus floodgates open for longer,” he told clients in a note.
There’s unlikely to be any further policy developments on Wednesday, but a reiterated commitment to keeping financial conditions supportive and interest rates low could boost investors’ spirits.
Oil climbed, with the price of West Texas Intermediate crude up 2.4% to $39.19 a barrel and Brent crude rising 2.1% to $41.38.
Stoxx Europe 600
index rose 0.2%, on the heels of a 0.7% gain on Tuesday. The U.K.’s
lost 0.7%, Germany’s
added 0.1%, and France’s
fell 0.6%. In Asia on Wednesday, Japan’s
rose 0.1%, China’s
lost 0.4%, and South Korea’s
closed down 0.3%.
The Organization for Economic Cooperation and Development on Wednesday lifted its global economic outlook, but warned policy makers against tightening policy too quickly.
Elsewhere, investors are waiting for
(ticker: SNOW) to begin trading on the New York Stock Exchange on Wednesday. Backed by Warren Buffett’s
the cloud-data software company priced an offering of 28 million shares at $120 a share, and will debut with a market value of more than $30 billion.
It is one of at least four substantial venture-backed technology companies lined up to go public this week.
(FDX) shares soared 7.2%. The company reported fiscal first-quarter results after Tuesday’s close that blew past analyst estimates. The company has benefited from a surge in shipping as the coronavirus pandemic has forced many to shop online.
(ADBE) shares fell 1.8% after the creative-software company likewise posted better-than-expected results for its fiscal third quarter ended Aug. 28. The stock had rallied into the report, and expectations were high.
(FB) shares slid 0.3% following a Wall Street Journal report that said the Federal Trade Commission is planning an antitrust suit against the social media company before the end of the year.
(DKNG) shares gained 7.4% after announcing an exclusive sports betting deal with the New York Giants. The agreement comes on the heels of a deal the online betting company struck with ESPN earlier in the week.
(NKLA) shares were down 3.6% after a report that the Justice Department is looking into claims made against the company last week by short-selling firm, Hindenburg Research. Nikola has denied the claims.
(BA) stock slipped 0.4% after a congressional report detailed the lapses in management and engineering controls that contributed to two fatal crashes of the company’s 737 Max jet in 2018 and 2019.
(KODK) stock surged 50% following the completion of a review of how the company disclosed a $765 million loan from the U.S. government in July. A special committee organized by Kodak’s board determined that no laws had been broken, but pointed to several governance concerns.
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