US stocks are trading higher with another busy earnings day

U.S. Equity Futures are trading higher as another busy earnings day looms, with three members of Dow – Merck, Caterpillar and McDonald’s – reporting all first quarter numbers.

Stocks in this article

$ 33,820.38

-164.55 (-0.48%)

$ 14,051.030521

-39.19 (-0.28%)

In addition, issues of Comcast, Northrop Grumman, Kraft Heinz, Altria, Dish Network and Mastercard are also due on Thursday.

President Joe Biden delivered a speech to Congress on Wednesday evening in which ambitious plans to create jobs created spending on preschool education, child care and other public services.

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In his Wednesday night speech, the president ticked off details of some of his $ 1.8 trillion spending plans to expand preschool, create a national family and medical leave program, distribute child care grants. children and more.

The plan comes on top of his $ 2.3 trillion spending proposal to rebuild roads and bridges, expand broadband access, and launch other infrastructure projects.

In its latest policy update, the U.S. central bank left its short-term benchmark rate close to zero, where it has been since the pandemic erupted nearly a year ago, to help maintain low lending rates to encourage borrowing and spending. He also said he would continue to buy $ 120 billion in bonds each month to try to keep long-term lending rates low.

“With no significant change in monetary policy or communication, this meeting was simply a message for market players to sit down and watch as the economic recovery continues to unfold,” Charlie Ripley said. , senior investment strategist at Allianz Investment Management.

The 10-year Treasury yield, which affects interest rates on mortgages and other consumer loans, eased following the Fed’s statement, slipping to 1.61% from 1, 62% Tuesday night.

Stocks initially had a bump following the 2pm East release of the Fed’s statement.

The S&P 500 lost 3.54 points to 4,183.18. The benchmark index hit an all-time high on Monday. The Dow Jones Industrial Average lost 0.5% to 33,820.38. The highly technological Nasdaq lost 0.3% to 14,051.03.

Small business stocks held up better than large companies. The Russell 2000 Index rose 0.1% to 2,304.16.

Wall Street has mostly risen in recent weeks, pushing stock indexes to record highs, as the rollout of COVID-19 vaccinations, massive support from the U.S. government and the Fed, and a spate of encouraging economic data fuel the expectations for a stronger economy. and strong growth in corporate earnings this year.

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Expectations of a strong rebound and rising prices for oil, lumber and other commodities also raised concerns about inflation and the outlook for higher interest rates. These concerns have helped fuel bond yields to rise sharply from their level at the start of the year.

In its remarks, the Fed noted that the economy and the labor market have “strengthened”. And, while acknowledging that inflation had increased, the central bank said it viewed the increase as transitory. Fed officials have said they want to see inflation exceed their 2% annual inflation target before considering raising rates.

Investors also focused on corporate earnings on Wednesday, with dozens of companies releasing their quarterly results.

Google’s parent company Alphabet rose 3% after announcing its profits doubled from a year ago, helped by an increase in digital ad revenue as more Americans shopped in line during the pandemic. Visa rose 1.5% after posting strong financial results.

Strong Google gains helped push up communications stocks. Oil prices have risen and have boosted the shares of energy companies. These gains were offset by a slowdown in tech and healthcare companies.

Investors sanctioned several other companies that failed to achieve their most recent financial results. Boeing slipped 2.9%, while Spotify fell 12.3% after the music streaming company said subscriber growth had slowed more than expected.

Among the biggest losers was biotech company Amgen. It fell 7.2% after its first-quarter earnings and revenue fell below analysts’ expectations.

Facebook rose 5.5% in after-hours trading after posting its latest results after the closing bell. Apple added 3.3% in extended trading after the company’s profits soared in its most recent quarter on the rise in iPhone sales.

Meanwhile, Asian stocks rose on Thursday, advancing in Hong Kong, Shanghai, Seoul and Sydney. Bond yields remained stable while oil prices rose.

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Japanese markets have been closed for a holiday. The Hong Kong Hang Seng rose 0.6% to 29,231.73 and the Shanghai Composite Index 0.2% to 3,463.10. In Seoul, the Kospi gained 0.2% to 3,186.28. The Australian S & P / ASX 200 added 0.4% to 7,090.10.

In other trades, benchmark US crude oil rose 19 cents to $ 64.05 per barrel on electronic trading on the New York Mercantile Exchange. It gained 92 cents to $ 63.86 on Wednesday. Brent crude, the international standard, advanced 23 cents to $ 67.01 a barrel.

The US dollar rose from 108.61 yen to 108.65 Japanese yen. The euro slipped to $ 1.2127 from $ 1.2128.

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AP Business editors Alex Veiga and Damian J. Troise contributed.