The US stocks finished session mixed on Wednesday, 28 July 2021, as investors digested earnings results and the Federal Reserve monetary policy decision.At the close of trade, the Dow Jones Industrial Average index dropped 127.59 points, or 0.36%, to 34,931. The S&P 500 index declined 0.82 point, or 0.02%, at 4,401. The tech-heavy Nasdaq Composite Index was up 102.01 points, or 0.7%, to 14,763.
Total 7 of 11 S&P 500 sectors inclined, with consumer staples (down 0.87%) sector was worst performer, followed by utilities (down 0.69%) and real estate (down 0.63%) sectors, while energy (up 0.97%) sector was top gainer, followed by communication services (up 0.75%) and healthcare (up 0.38%) sectors.
Shares of Google parent, Alphabet Inc, rose 3.2% to an all-time high as a surge in advertising spending helped it post record quarterly results.
Microsoft shares settled roughly flat despite the company reporting stronger-than-expected second-quarter results, while Apple Inc. ended down as warning about a global chip shortage outweighed better than expected quarterly results.
Boeing Company shares climbed after the company reported net earnings of $587 million compared to a loss of $2.38 billion in the prior year.
Pfizer Inc shares surged up 4.2% after the company raised its outlook for fiscal 2021 earnings and revenues.
ECONOMIC NEWS: Fed Committed To Using Full Range Of Tools To Support US Economy- The Federal Reserve is committed to using its full range of tools to support the US economy in this challenging time, thereby promoting its maximum employment and price stability goals. The Federal Open Market Committee, which concluded its two-day monetary policy meeting Wednesday afternoon, left the target range for its federal funds rate unchanged at 0% to 0.25%, and said it will continue with its $120 billion-a-month bond-buying program. The Committee expects it will be appropriate to maintain this target range until labor market conditions have reached levels consistent with the Committee's assessments of maximum employment and inflation has risen to 2% and is on track to moderately exceed 2% for some time.
The Committee seeks to achieve maximum employment and inflation at the rate of 2% over the longer run. With inflation having run persistently below this longer-run goal, the Committee will aim to achieve inflation moderately above 2% for some time so that inflation averages 2% over time and longer-term inflation expectations remain well anchored at 2%. The Committee expects to maintain an accommodative stance of monetary policy until these outcomes are achieved.
In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals. The Committee's assessments will take into account a wide range of information, including readings on public health, labor market conditions, inflation pressures and inflation expectations, and financial and international developments.
With progress on vaccinations and strong policy support, indicators of economic activity and employment have continued to strengthen, the Fed stated. The sectors most adversely affected by the pandemic have shown improvement but have not fully recovered. Inflation has risen, largely reflecting transitory factors. Overall financial conditions remain accommodative, in part reflecting policy measures to support the economy and the flow of credit to U.S. households and businesses. The path of the economy continues to depend on the course of the virus. Progress on vaccinations will likely continue to reduce the effects of the public health crisis on the economy, but risks to the economic outlook remain, FOMC stated.
Among Indian ADR, Wipro added 1.08% to $8.44, Tata Motors added 0.36% to $19.34, ICICI Bank added 2.61% to $18.59, Vedanta added 3.48% to $14.58, HDFC Bank added 0.75% to $70.30, and INFOSYS added 0.64% to $21.85. WNS Holdings fell 0.31% to $80.33 and Dr Reddys Labs fell 0.7% to $63.18.
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