Despite blowout earnings from Apple, a hot ADP employment number and a constructive economic outlook from the Fed, stocks coughed up early gains and drifted without much direction into the close. The FOMC release, as expected did not include an increase in the Fed Funds rate, but as mentioned they did indicate that economic activity is “strong” rather than the “solid” description they has used last meeting. It would appear likely that we will get at least one more rate hike this year and maybe two more.
As for stocks, by the close the Dow Jones Industrial Average was down 81 points to finish the day at 25,333. The S&P 500 was down 2 points to close at 2,813. Gold was down $7 to trade at $1,225 per ounce, while oil was down $.97 to trade at $67.79 per barrel WTI.
Tariff news, particularly with China continues to be a headwind to stocks, but the inability to rally on earnings news like Apple’s (Apple itself did rally nicely) for the market as a whole is a bit disconcerting. Let’s see how the rest of the week plays out as we move into the August heat.
Have a nice evening everyone.