Wednesday's Market Minute
- Apple Inc. (AAPL) - Get Report closed above $200 with the company approaching a $1 trillion valuation after releasing third-quarter earnings.
- Grocery chain Kroger (KR) - Get Report is launching a grocery delivery service.
- Stocks dipped to their lows of the day after the Fed meeting ended.
U.S. stock indexes ended mixed on Wednesday, August 1, after the Fed held interest rates steady but signaled more hikes are likely and Bloomberg reported that the Trump administration is planning to raise pending tariffs on Chinese imports to 25% from 10%.
Apple's latest earnings report sparked a rally that sent it within $2 of becoming the first company with a market cap of $1 trillion.
The Federal Reserve left its key interest rate steady following a two-day meeting, but signaled that the economy remains strong and inflation tame, laying the groundwork for additional rate hikes later this year.
Chinese officials are ramping up the rhetoric in response to the latest trade tensions.
"U.S. pressure and blackmail won't have an effect," China's Foreign Ministry said. "If the United States takes further escalatory steps, China will inevitably take countermeasures and we will resolutely protect our legitimate rights. Unilateral threats and pressure will only produce the opposite of the desired result."
Apple (AAPL) - Get Report shares opened at a record high Wednesday, boosting the value of the world's biggest tech company to more than $970 billion, following forecast-busting third-quarter earnings and a robust outlook for sales heading into the second half of the year. Apple ended up 6% at $201.50.
Shares of Burger King and Tim Hortons parent company Restaurant Brands International Inc. (QSR) - Get Report rose 1.3% after the company reported revenue below analyst forecasts while same-store sales came in flat.
Shares of Chinese search giant Baidu Inc. (BIDU) - Get Report fell 8% on reports that U.S. rival Google (GOOGL) - Get Report is planning a censored version of its search engine service that would adhere to China's strict internet regulations.
Beleaguered pizza company Papa John's International (PZZA) - Get Report rose 1% after analysts at Jefferies upgraded the company to "buy" from "hold." The firm said that the fallout from the contentious ouster of founder John Schnatter is already baked into the company's stock price.
In Europe, Germany's DAX performance index fell 0.08% and Britain's FTSE 100 lost 0.83% to the downside thanks to big declines for basic resource stocks after disappointing first-half earnings from mining giant BHP Billiton plc (BHP) - Get Report .
Japan's Nikkei 225, however, put together a solid 0.86% gain overnight as a weaker yen, which slipped to 112.05 against the dollar following Tuesday's dovish Bank of Japan policy meeting, drove export-focused stocks higher.