Here are five things you must know for Thursday, Sept. 27:
1. -- Stocks Turn Higher After Fed Hikes Rates
U.S. stock futures rise slightly on Thursday, Sept. 27, as investors sifted through the language of the interest rate hike from the Federal Reserve.
The Fed's third rate hike of the year, a 0.25% move which raised the central bank's key lending rate to within the range of 2% to 2.25%, was accompanied by the removal of a reference to "accommodative" monetary policy for the first time since the global financial crisis, wording that initially was seen as a signal for faster future rate hikes. But Chairman Jerome Powell played down the change in language, noting that while the economy was solid the benefits of growth haven't been shared across the entire nation, a dynamic which requires only gradual rate increases and a watchful eye on inflation pressures.
Contracts tied to the Dow Jones Industrial Average
Donald Trump said Wednesday he's "not happy" the Federal Reserve raised rates, but understood it did so "because we're doing so well."
- Fed Raises U.S. Interest Rates as Trump Tax Cuts Heat Up Economy
- What Is the Federal Reserve, Who Owns It and What Is Its Purpose?
The economic calendar in the U.S. on Thursday includes the third estimate for second-quarter GDP at 8:30 a.m. ET, weekly Jobless Claims at 8:30 a.m., Durable Goods Orders for August at 8:30 a.m., and International Trade in Goods for August at 8:30 a.m.
Rite Aid Corp. (RAD) reported an adjusted loss of 1 cent a share in its fiscal second quarter; analysts expected a break-even quarter. Revenue of $5.42 billion topped estimates of $5.36 billion. The stock rose 1.6% in premarket trading on Thursday.
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2. -- Google Confirms Existence of a China Search Engine
Google's chief privacy officer, Keith Enright, told a Senate hearing on Wednesday that the Alphabet Inc. (GOOGL) unit was developing a search engine in China, in compliance with censorship requests of the Chinese government.
Enright denied that Google was "close" to launching such a search engine and said it was "unclear" if it would, but that he would be closely involved if the company was to launch a China search engine.
"Project Dragonfly" reportedly is the code name for Google's secret mission to develop a censored search app specifically for China.
The discussion of the Chinese search engine came up at a hearing of the Senate Committee on Commerce, Science and Transportation, where executives from Apple Inc. (AAPL) , Amazon.com Inc. (AMZN) , Alphabet, Twitter Inc. (TWTR) , AT&T Inc. (T) and Charter Communications Corp. (CHTR) testified about consumer privacy.
3. -- Ford Says It Lost $1 Billion in Profit From Trump's Tariffs
Ford Motor Co. (F) said Trump's tariffs have dipped into the automaker's profits.
"The metals tariffs took about $1 billion in profit from us - and the irony is we source most of that in the U.S. today anyways," Ford CEO Jim Hackett said in an interview on Bloomberg Television. "If it goes on longer, there will be more damage."
"What we're urging our administration to do - where we're in China and in Europe - we say, you need to come to an agreement quickly," Hackett said.
Trump this month escalated his trade dispute with China, imposing 10% tariffs on $200 billion worth of Chinese goods. China then responded with tariffs on $60 billion worth of U.S. products.
Ford rose 0.5% in premarket trading.
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4. -- Amazon Opens a General Store in New York
Amazon will open Thursday a general merchandise store in New York that offers new items and those that are trending on its website, goods that have four or five star reviews or which are top sellers.
The store also will sell Amazon devices that run its smart assistant Alexa, as well as accessories that work with Alexa, USA Today reported.
The store is located in New York's SoHo district. Items will feature two prices, the list price for regular buyers and the Amazon.com online price for those with Amazon Prime accounts.
An Amazon spokeswoman told CNBC the store was permanent, and not a pop-up location.
5. -- McDonald's Burgers Are Preservative-Free
McDonald's Corp. (MCD) said most of the burgers it serves in the U.S. are now preservative-free.
Sandwiches such as the Big Mac and Quarter Pounder with Cheese are preservative-free, with reformulated buns and sauces. Pickles on the sandwiches still contain artificial preservatives, but customers can request sandwiches without pickles, McDonald's said.
McDonald's gradually has been removing preservatives from its menu for several years in an effort to appeal to more health-conscious buyers. In 2016, it removed high-fructose corn syrup from its buns and took artificial preservatives out of its Chicken McNuggets, according to the Associated Press.
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