The Dow Jones Industrial Average rose another 0.2% Tuesday and was just a little off session highs as the Federal Reserve meeting got underway. Other indexes also climbed.
Airline stocks, which had been among the market leaders, fell broadly. Meanwhile, United Parcel Service announced it reached a tentative contract agreement with the Teamsters union. UPS shares were volatile after the news, reversing lower in afternoon trading.
The S&P 500 rose 0.4%, and the Nasdaq climbed nearly 1% at the hour. The small-cap Russell 2000 fell 0.2%. The Innovator IBD 50 ETF outperformed with a 1.3% gain.
Volume was higher on the Nasdaq and lower on the New York Stock Exchange compared with the same time on Monday.
The Fed is widely expected to raise rates by 25 basis points on Wednesday afternoon to a target rate of 5.25% to 5.5%. The CME FedWatch Tool sees a 98.9% chance of a hike. The question is whether markets are pricing it in as a final hike.
The Conference Board's consumer confidence number rose to 117.0 in July from a revised 110.1 the prior month. Economists had forecast 111.8, per Econoday. The adjusted S&P CoreLogic Case-Shiller home price index rose 1% in May from a 0.9% increase the previous month. Economists called for a 0.8% increase.
The yield on the benchmark 10-year Treasury note rose four basis points to 3.9%.
Dow Jones Stocks
Tech titan Microsoft rose more than 1% in the afternoon session. Shares are getting some support at the 10-day moving average ahead of earnings after Tuesday's close. Growth in its intelligent cloud segment — as well as its investments and ventures in generative artificial intelligence such as Microsoft 355 Copilot — are on watch.
Verizon rose as well after a strong quarter. Wireless service revenue rose from the previous year. Meanwhile, free cash flow of $8 billion in the first half of the year was higher than the $7.2 billion in 2022's first half. Shares have yet to retake their 50-day line.
Apple will report on Aug. 3. The stock is holding above its 21-day exponential moving average and just a little below its all time high of 198.23.
Futures: Tech Titan Soars On Cloud; Fed Rate Hike On Tap
Stocks On The Move
Airlines stocks are falling after Alaska Air Group gave a soft outlook. The airline expects current-quarter revenue to remain flat, compared with a 3% gain a year ago, reports said.
The stock gapped below its 50-day moving average in heavy volume. Share erased all gains from their breakout at 51.02 and were down more than 10% in the afternoon, according to IBD MarketSmith chart analysis. That triggered sell signals.
Allegiant Travel fell nearly 3%. Delta Air Lines pared some early losses but was still down 2%. United Airlines is back near a buy point of 54.05. And American Airlines is testing its 50-day line.
But a few stocks broke out.
Southern Copper is rising above a cup buy point of 82.05. Logitech gapped up in strong volume after earnings beat expectations, although its outlook was cautious. And Zoetis is breaking out of a cup at 187.82.
General Electric jumped 6% in big volume after a strong second quarter, as its focus on aerospace and renewable energy is paying off. General Motors fell after its earnings report.
Among other earnings movers, Cadence Design Systems fell while NXP Semiconductor rose after beating estimates.
Shares of Spotify continued to sell off in the stock market today, extending a three-day losing streak after earnings were announced Tuesday. Shares have fallen below the 50-day line in heavy volume, a sell signal.
ARK Invest fund manager Cathie Wood drifted in and out of four medical stocks, according to the firm's disclosures. The ARK Genomic Revolution ETF added Moderna and Accolade but sold Exact Sciences and Schrodinger.
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