Stocks were down in intraday trading Tuesday after a slew of earnings reports and as Wall Street turns its attention to the Federal Reserve and efforts by U.S. lawmakers to secure the next coronavirus relief package.
The Fed begins a two-day meeting Tuesday and investors expect the central bank to remain supportive of the economy as the U.S. economy struggles in its fight against the coronavirus pandemic.
At its meeting in June, the Federal Reserve kept interest rates steady and said it expects to hold the target range for the federal funds rate unchanged at 0% to 0.25% at least through 2022 or until the economy “had weathered recent events.”
And Senate Republicans unveiled their $1 trillion virus aid package that would include cutting the current federal $600 weekly unemployment supplement down to $200 a week, and send $1,200 payments to most Americans during a time where the Kitchen Table Economist reports that Americans are dissatisfied with the economy at unprecedented levels.
Democrats are pushing for a $3.5 trillion plan that includes money for schools and local governments.
Now for earnings…
Pfizer reported stronger-than-expected second-quarter earnings and lifted its full-year profit guidance as branded drug sales offset the slowdown linked to the global coronavirus pandemic.
3M reported second-quarter earnings that were weaker than expected and the company declined to reinstate full-year profit guidance as coronavirus shutdowns of businesses around the world hammered industrial sales
And, finally, McDonald’s reported earnings that missed second-quarter earnings estimates as global sales slumped amid restaurant closures triggered by the pandemic.
Starbucks is set to report after the bell and Jim Cramer says the stock is testament of a market that's "all over the place."
Watch the video above for more.