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Markets Await Confirmation of a June Rate Hike

Most do not expect any change before that, with the Federal Reserve issuing its latest policy statement today

By Anthony Mirhaydari, InvestorPlace Market Strategist


Stocks lifted on Tuesday thanks to strength in the technology sector, with the major averages closing near their best levels of the day. The S&P 500 added 0.3%. The Nasdaq Composite gained 0.9%. The Dow Jones Industrial Average underperformed, losing 0.3%.

At the lows of the day, the S&P 500 was down as much as 0.9%. All eyes were on Apple Inc. (NASDAQ:AAPL) which gained 2.3% ahead of results after the close. And they were good: Earnings of $2.73 per share beat estimates by five cents on a 15.6% rise in revenues. iPhone shipments totaled 52.2 million vs. 52 million expected and 50.8 million the year prior. The dividend was raised 16% and a new $100 billion share repurchase program was announced.

Besides technology, four other sectors finished in the green including financials, consumer discretionary, healthcare, and real estate. Pfizer Inc. (NYSE:PFE) fell 3.3% after the company reported upbeat earnings on weak revenues. Merck & Co., Inc. (NYSE:MRK) fell 1.5% on in-line revenues despite solid earnings and higher guidance.

Looking ahead, the Federal Reserve’s latest policy statement is due Wednesday. No rate hike is expected, although a surprise can’t be ruled out. Watch for a confirmation of a June hike and language highlighting the recent firming of inflationary pressures.

Check out Chris Tyler’s Trade of the Day for May 2.

Today’s Trading Landscape

To see a list of the companies reporting earnings today, click here.

For a list of this week’s economic reports due out, click here.

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Anthony Mirhaydari is founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.

Article printed from InvestorPlace Media, https://investorplace.com/2018/05/markets-await-confirmation-june-rate-hike/.

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