Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average
finished higher for the first time in four session. The S&P 500 closed higher for the first time in five sessions.
- The Federal Reserve raised rates for the third time this year on Wednesday and indicated it would lift rates again in December and three times in 2019.
- Apple Inc. (AAPL) rose 2% after JPMorgan Chase initiated coverage on the iPhone maker with an overweight rating and a price target of $272.
Wall Street OverviewStocks ended modestly higher on Thursday, Sept. 27 as major indexes gave up more than half of their earlier gains in the wake of Wednesday's 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 a 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.
The Dow Jones Industrial Average
President 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
- Here's Why the Fed's Rate Hike Will Cause a Housing Market Ruckus
In U.S. economic data, the third estimate for second-quarter GDP rose at a 4.2% annualized rate, unrevised from the earlier Commerce Department estimate, while durable goods orders in August rose 4.5%, the biggest increase since February.
Apple Inc. (AAPL) rose 2% to $225.59 after JPMorgan Chase initiated coverage on the world's biggest tech company with an overweight rating and a price target of $272.
JPMorgan said the compelling transformation of Apple's services business, as well as its capital deployment and installed base, will drive group sales and earnings in the quarters ahead. JPMorgan said it sees the mix of services revenues rising from 8% in 2012 to as high as 20% by the end of the 2021 fiscal year.
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 declined 3%.
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Shares of Conagra Brands Inc. (CAG) tumbled 9% after the packaged food company posted adjusted first-quarter earnings of 47 cents a share, 2 cents below estimates, and sales of $1.83 billion, below forecasts of $1.85 billion.
Bed Bath and Beyond Inc. (BBBY) plunged 21% after the struggling home retailer posted much weaker-than-expected second-quarter earnings and cited the impact of trade tariffs on China-made goods as it slashed its sales and profit target for the rest of the year.
- 7 Reasons Why Bed Bath & Beyond Really Stinks
- Bed Bath & Beyond Plunges 20+% After Slashing Sales Forecast on China Tariffs
Carnival Corp. (CCL) reported third-quarter adjusted profit of $2.36 a share, 4 cents above analysts' estimates, while revenue of $5.84 billion topped estimates of $5.8 billion. Shares fell 5%.To be a profitable investor and build long-term wealth, you need the right information and techniques. Join TheStreet Oct. 13, 2018 for a special investing event for sophisticated and active traders. Register for "Invest Like the Pros: Jim Cramer's Boot Camp for Investors" here.
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