By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
Boeing, U.S. Steel rise on earnings beat
NEW YORK (MarketWatch) -- U.S. stocks moved higher on Wednesday,
with big gains in Apple Inc. lifting the Nasdaq Composite.
Apple's earnings results surprised even the most bullish
analysts as the tech giant reported $18 billion profit in the
latest quarter.
The Nasdaq Composite (RIXF) outperformed other indexes, thanks
to big gains in Apple, its heaviest-weighted stock.
The S&P 500 (SPX) rose, with broad-based gains led by the
sector, which jumped 2%. Eight of 10 main sectors on the index were
trading higher, while energy sold off.
The Dow Jones Industrial Average (DJI) rose with more than
two-thirds of its components trading higher. Boeing Co (BA) was the
top gainer, while Chevron (CVX) was the laggard.
Andrew Nyquist, founder of financial blog "See It Market," wrote
that a mixed bag of highs and lows in earnings season hasn't helped
a market that is fixated on growth.
"The markets could get some help from the Fed today. It still
feels a bit unsettled as investors will likely need to see some
additional constructive economic data. I think the higher dollar
has spooked some as well. Investors want some assurance that the
stronger dollar isn't hurting the economy or earnings," Nyquist
wrote.
The Federal Open Market Committee meeting will issue a statement
on monetary policy at 2 p.m. Eastern Time. Analysts do not expect
the Fed to make any major changes to the current policy.
Colin Cieszynski, chief market analyst at CMC Markets, wrote:
"While the Fed has historically focused more on domestic needs than
overseas trends when setting monetary policy, Tuesday's data
highlight the central bank is in a bit of a spot right now."
Goldman Sachs and others expect the first hike in short-term
interest rates by September. But Ellen Zentner, economist at Morgan
Stanley said Tuesday that she doesn't expect a Fed hike until March
2016, partly because the downward pressure on inflation is stronger
than expected.
A strong dollar, which has been cutting into corporate earnings,
and weak oil prices have investors hoping the Fed will delay that
hike, and they will be looking for a signal to support that from
the statement.
Doubts grow about midyear rate hike, but Fed won't express
any
Apple earnings Apple shares jumped nearly 8% after the company
reported another record for its flagship iPhone, with 74.5 million
phones sold in the fiscal first quarter. Profit rose 38% to a
record high.
Also read: This is what Apple analysts are worried about
Yahoo, Boeing in focus: Shares of Boeing (BA) gained after the
company's fourth-quarter earnings beat forecasts.
Yahoo Inc. (YHOO) jumped after the Internet search engine late
Tuesday said it would spin off its Alibaba Group Holding Ltd.
(BABA) stake into a separate publicly traded company.
U.S. Steel Corp. (X) jumped after the steel producer's earnings
topped Wall Street estimates.
Abiomed Inc. (ABMD) surged 32% after the medical device maker
posted earnings that blew out Wall Street estimates.
On the downside, Ethan Allen Interiors Inc. dropped sharply
after weaker-than-expected results in its holiday quarter.
Shake Shack Inc. (SHAK) raised the terms for its initial public
offering and said it would offer 5.75 million shares to be priced
at $17-$19 a share.
Overseas markets: Europe stocks were mixed, with Greece
suffering from another selloff after Prime Minister Alexis Tsipras
stressed he will push for debt relief from the country's
international creditors.
The Nikkei 225 index rose to a fresh one-month high as the yen
weakened against the dollar and other currencies.
Crude-oil prices (CLH5) fell 92 cents to $45.31 a barrel, as
another investment bank downgraded its forecast for the commodity.
Barclays cut its forecasts for WTI crude to $42 a barrel for 2015
from $66 and $57 a barrel for 2016. For Brent crude, Barclays cut
its forecast to $44 a barrel for 2015 from $72 and forecast $60 for
2015.
Gold prices (GCG5) drifted lower ahead of the FOMC meeting.
Sara Sjolin in London contributed to this article.
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