With the Fed up to bat later this afternoon, buying interest in the stock market may be somewhat subdued until investors see what policymakers have to say, although the bias in stocks seems to be to the upside this morning.
This afternoon, the Fed is scheduled to release comments from its first policy meeting under its new flexible inflation target policy. While market participants aren’t expecting the Fed to do anything with rates, many may be curious whether the central bank will offer more comments about the policy.
In economic news this morning, retail sales came in weaker than expected, rising by 0.6% in August when a Briefing.com consensus had expected a 1% rise. The prior reading was also revised lower, to 0.9% from 1.2%.
The lackluster August numbers represent the first month after the extra $600 per week in federal unemployment benefits came to an end and as Congress hasn’t worked out a new coronavirus aid package that would provide more stimulus money for Americans.
Turning to corporate news, FedEx Corporation (NYSE: FDX) hit a home run in its earnings release after the market closed yesterday. The company saw increased revenue per package, and average daily package volume for FedEx Ground rose more than 30%. Earnings per share far exceeded analyst expectations, and revenue also beat forecasts. The company’s shares were up around 9% this morning.
Meanwhile, Boeing Co’s (NYSE: BA) shares were pointing lower this morning following a scathing Congressional report about its beleaguered MAX jets that cited serious issues with the plane’s design and construction, as well as certification lapses at the Federal Aviation Authority.
Tech-Related Stocks Resume Leadership
Although the Dow Jones Industrial Average ($DJI) finished just slightly in positive territory on Tuesday, the other two made better headway. The tech heavy Nasdaq Composite (COMP) gained the most ground as tech-related companies