Stocks falter after report of Fed meeting

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US stocks came to a halt as investors drafted a detailed account of the deliberations at the last meeting of the Federal Open Market Committee.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The S & P 500 (^ GSPC) increased by 0.18% or 4.94 points at the close of the market. The materials sector outperformed, with gold having reached its highest price in 10 months. The Dow (DJI) increased by 0.24%, or 63.12 points, while the Nasdaq (^ IXIC) slightly up 0.03% or 2.3 points. "data-reactid =" 16 "> The S & P 500 Index (^ GSPC) rose by 0.18%, or 4.94 points, at the close of the market.The materials sector outperformed, the Gold reaching its highest price The Dow (^ DJI) rose 0.24%, or 63.12 points, while the Nasdaq (^ IXIC) rose 0.03%, or 2.3 points.

The FOMC published the minutes of its January meeting at 2 pm AND Wednesday. The S & P 500 and Dow indices each climbed to the highs of the session within minutes of the Fed's release. The Dow briefly jumped nearly 100 points before major indices fell into the red and then recovered.

The details helped fuel the rise in equities by showing the central bank's commitment to relaxing its balance sheet normalization process. This is a priority for investors as the Fed continued to allow bonds and other assets to fall off the balance sheet without reinvestment, raising concerns about the liquidity of financial markets and uncertainty about The Fed would be willing to adjust its policies if market conditions deteriorated.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Feelings & nbsp;reflected in the minuteshowever, fears of rigidity have been largely appeased. "data-reactid =" 19 "> The feelings expressed in the minutes, however, largely eased fears of rigidity.

"Participants noted that while the target range for the federal funds rate was the Committee's primary means of adjusting the policy direction, the balance sheet standardization process should be conducted in a way that supports achievement of the Federal Reserve's dual mandate objectives of: employment and stable prices, "reads the minutes. "In line with this principle, the participants agreed that it was important to be flexible in managing the process of standardization of balance sheets and that it would be appropriate to adjust the details of balance sheets in the light of economic and financial developments, if this proved necessary. macroeconomic objectives of the Committee. "

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "" Almost all participants "have been announced, announcing the end of the process of standardization of the balance sheets this year, the minutes have continued Officials & nbsp;had believed in the origin& nbsp; that the balance sheet balance could last until 2023. "data-reactid =" 21 ">" Almost all participants "supported the announcement of the end of the process of normalization of balance sheets this year, continued the record that the balance sheet could last until 2023.

It was also noted in the minutes that participants had highlighted "a series of considerations advocating a patient approach to monetary policy" given the "current risks and uncertainties". These provided further evidence of the Fed's policy on data-dependent politics, some of the central bankers' concerns for the economy. In particular, the "patient" positions of Fed officials have been influenced by decelerating growth in the world economy and more difficult financial conditions.

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Many market participants have characterized the decision of the managers of the Fed in January accompanying statements pointing to & nbsp;flexibility on the progress of their assessment process as a "pivot" of a more ferocious position before. However, others have said that Fed officials have been willing to change their policy for some time on the database, as investors misinterpreted the latest decision as a reversal rather than the product of the latest assessment of those responsible. current economic situation. The themes of data dependence were telegraphed even in September, following the Fed's third rate hike in 2018, when Fed Chairman Jerome Powell & nbsp;officials& nbsp; were carefully monitoring incoming data from financial markets and the economy "when making a decision." data-reactid = "23"> Many market participants described the January Fed's decision and the accompanying statements, indicating flexibility in the decomposition process of its balance sheet. Others have claimed that Fed officials were willing to change their political trajectory for some time on the database, as investors mistakenly interpreted the latest decision as a reversal rather than the product of makers. Data dependence was telegraphed even in September, following the Fed's third rate hike in 2018, when Fed Chairman Jerome Powell said officials were carefully monitoring incoming data from financial markets. and the economy.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "In the weeks leading up to the publication of The President of Cleveland's Federal Bank, Loretta Mester, said on Tuesday that Federal Reserve officials had emphasized their patient approach to future policy decisions and reiterated their commitment to using data to make decisions. in New York, John Williams, said in a & nbsp;interview with Reuters& nbsp; he does not think that interest rates will have to be raised unless new signs of economic growth or inflation data justify such a move. "Data-reactid =" 24 "> In the weeks leading up to the release of the minutes, Federal Cleveland Federal Bank President Loretta Mester said on Tuesday that Reserve officials had emphasized their patient approach to future policy decisions and reiterated their commitment to using the data to make decisions, before making further policy rate adjustments, and New York Fed President John Williams said in an interview with Reuters that he did not think that interest rates should be raised unless new signs of economic growth or that inflation data warrant it.

New York Stock Exchange traders listen carefully to Jerome Powell, President of the US Federal Reserve, on a video screen giving a press conference from Washington after the announcement of the rate hike by the Fed, Wednesday, December 19, 2018 (AP Photo / Mark Lennihan)

The minutes come as data released in February reaffirmed the more patient stance of FOMC officials. The basic consumer price index, closely watched – a key measure of core inflation in the economy – released last week posted a year-over-year growth rate of 2.2% in January, close to the 2% target set by the Fed. The latest reading of the producer price index, also released last week, recorded an unexpected decline, suggesting controlled inflation. Other data showed that US manufacturing output had the largest decline in eight months in January, suggesting that some sectors would be less active.

Earnings

Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" Elsewhere, profits continue to stimulate financial markets. , CVS Health (CVS) outperformed expectations for quarterly earnings, but ran out of sales and posted earnings outlook for the current quarter lower than Wall Street estimates. Data Elsewhere, Earnings Continue to Boost Financial Markets Wednesday, CVS Health (CVS) Exceeded Expectations for Quarterly Earnings, But Missed Sales and Provided Profit Prospects for current quarter lower than Wall Street estimates.

The prospect of negative results in the first quarter led many to talk about a "recession" on corporate profits, with worries amplified during a period of slowing global and national economies. However, many analysts say the decline is much less severe, especially considering the impact of large-cap, highly weighted earnings.

"While many use the word" R "to describe business profits, a data analysis highlights a more lenient context, with a handful of very large companies distorting forecasts," writes Jonathan Golub, chief strategist US stocks at Credit Suisse. in a note on Tuesday. "Six of the 11 sectors are expected to generate negative growth in the first quarter when they are measured on a weighted basis, but only 2 out of 11 (communications and energy) for the median stock of each group."

Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" Investors also continue to monitor the ongoing negotiations between US and China met Tuesday in Washington, DC Representatives of US President Donald Trump said on Tuesday that the talks were going well and suggested that March 1 – the date after which tariffs on Chinese manufacturing was about to increase – was not a "magic" date for the completion of the negotiations.These remarks sent actions higher on Tuesday.Investors also continue to follow ongoing US-China talks as the two countries' delegations met in Washington, DC on Tuesday. said on Tuesday that the talks were going well, and suggested that March 1 – the date after which tariff rates on Chinese-made products should rise – should not be a "magic" date for the end of negotiations. pushed up the shares on Tuesday.

Stock moves

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "You're here (TSLA) shares declined in the wake of the departure of another officer and a & nbsp;Twitter post& nbsp; CEO Elon Musk, revising a projection of the automaker's manufacturing figures for the year. Tesla's legal advisor, Dane Butswinkas, is leaving the company and will be replaced by Jonathan Chang, Tesla's vice president of legal affairs, effective Wednesday, the automaker said in a statement. Butswinkas' decision was due to poor cultural adjustment and the desire to return to his family and practice law in Washington, DC, Yahoo Finance told a source aware of the situation. Butswinski's departure is the latest in a series of & nbsp;Executives in the last year, with the company announcing recently & nbsp;Retirement of CFO Deepak Ahuja in January.& nbsp; Tesla shares fell 1% to $ 302.56 each. "data-reactid =" 47 ">You're here (TSLA) shares declined in the wake of the departure of another officer and one Twitter post Elon Musk, CEO, reviews a projection of the automaker's manufacturing figures for the year. Tesla's legal advisor, Dane Butswinkas, is leaving the company and will be replaced by Jonathan Chang, Tesla's vice president of legal affairs, effective Wednesday, the automaker said in a statement. Butswinkas' decision was due to poor cultural adjustment and the desire to return to his family and practice law in Washington, DC, Yahoo Finance told a source aware of the situation. Butswinski's departure is the latest in a series of leadership releases over the past year. The company recently announced the retirement of CFO Deepak Ahuja in January. Tesla shares fell 1% to $ 302.56 each.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "CVS (CVS) shares fell after the company delivered a Weaker than expected outlook for 2019 due to rising costs and Aetna's ongoing integration, which CVS has acquired for $ 70 billion as part of a transaction completed in November. Earnings per share in the fourth quarter were $ 2.14 compared to $ 2.08 per share expected by consensus analysts surveyed by Bloomberg, while net sales were slightly higher than expected. CVS said it expects adjusted earnings of $ 1.49 to $ 1.53 per share in the first quarter of 2019, below the consensus estimate of $ 1.64. Adjusted full-year earnings are expected to be between $ 6.68 and $ 6.88 per share, below estimates of $ 7.36 per share on Wall Street. CVS shares fell 8.1% to $ 64.22 each. "Data-reactid =" 48 ">CVS (CVS) shares fell after the company delivered a Weaker than expected outlook for 2019 due to rising costs and Aetna's ongoing integration, which CVS has acquired for $ 70 billion as part of a transaction completed in November. Earnings per share in the fourth quarter were $ 2.14 compared to $ 2.08 per share expected by consensus analysts surveyed by Bloomberg, while net sales were slightly higher than expected. CVS said it expects adjusted earnings of $ 1.49 to $ 1.53 per share in the first quarter of 2019, below the consensus estimate of $ 1.64. Adjusted full-year earnings are expected to be between $ 6.68 and $ 6.88 per share, below estimates of $ 7.36 per share on Wall Street. CVS shares fell 8.1% to $ 64.22 each.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Southwest Airlines (LUV) in a regulatory filing on Wednesday reduced its revenue growth prospects by available seat, or MSAR, for the current quarter. The low-cost airline is now expecting that RASM, a key measure of airline efficiency, will increase by 3% to 4% over the same quarter of last year, down from the previous 4% to 5% growth. Southwest said in its report that it was forecasting a negative impact of about $ 60 million on first-quarter revenues, "as the company continues to see passenger demand and reservations falter as a result of the government closure ", which lasted more than a month. month between December and January. Southwest previously had a negative impact on revenues of $ 10-15 million. Southwest Airlines shares fell by more than 5% to $ 54.41 each. "Data-reactid =" 49 ">Southwest Airlines (LUV) in a regulatory filing on Wednesday reduced its revenue growth prospects by available seat, or MSAR, for the current quarter. The low-cost airline is now expecting that RASM, a key measure of airline efficiency, will increase by 3% to 4% over the same quarter of last year, down from the previous 4% to 5% growth. Southwest said in its report that it was forecasting a negative impact of about $ 60 million on first-quarter revenues, "as the company continues to see passenger demand and reservations falter as a result of the government closure ", which lasted more than a month. month between December and January. Southwest previously had a negative impact on revenues of $ 10-15 million. Southwest Airlines shares declined by more than 5% to $ 54.41 each.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Kandi Technologies (KNDI), a Chinese manufacturer, said in a Press release& nbsp; On Wednesday, he was allowed to import two of his models to the US, which allowed his shares to climb to its highest level in 52 weeks during intraday trading. The automaker's EX3 and K22 models have been approved for import by the US National Highway Traffic Safety Administration. Shares of Kandi Technologies jumped 34% to $ 7.98 each on the Nasdaq. "Data-reactid =" 50 ">Kandi Technologies (KNDI), a Chinese manufacturer, said in a press release issued Wednesday that he had been given permission to import two of his models to the US, boosting the stock price to a 52-week high during an intraday session. The automaker's EX3 and K22 models have been approved for import by the US National Highway Traffic Safety Administration. Shares of Kandi Technologies jumped 34% to $ 7.98 each on the Nasdaq.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Emily McCormick is a journalist for Yahoo Finance. Follow her on Twitter: @emily_mcck"data-reactid =" 51 ">Emily McCormick is a journalist for Yahoo Finance. Follow her on Twitter: @emily_mcck

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and reddit."data-reactid =" 52 ">Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and reddit.

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