Dow Jones News: Dow Climbs as Fed Meets and Apple Releases Earnings

Garrett Baldwin

In Dow Jones news today, the Dow gained 36 points after the U.S. Federal Reserve began its two-day meeting and Apple prepared to release earnings.

Here are the numbers from Tuesday for the Dow, S&P 500, and Nasdaq:

Now, here's a closer look at today's most important market events and stocks, plus Wednesday's economic calendar.

• This morning, the Federal Open Market Committee (FOMC) kicked off a two-day meeting on monetary policy. The central bank is not expected to hike interest rates in May, but markets are still focused on the discussion about potential rate hikes later this year. Investors largely believe that the Fed will take action on rates again in June, but it remains uncertain if the Fed is satisfied enough with the state of the U.S. labor market and the inflation rate to warrant additional hikes.

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• It was a busy day for U.S. automotive companies as they announced disappointing April monthly sales. Shares of General Motors Co. (NYSE: GM) fell 2.9%, while Ford Motor Co. (NYSE: F) dipped more than 4% on news that U.S. auto sales fell by more than 3% year over year. GM also announced that the company will take a $100 million charge for its Venezuelan operations. After 70 years, the Detroit auto giant left the South American country after the government seized and nationalized a production facility.
• Crude oil prices fell after worries about U.S. and Libyan production offset optimism over output cuts in Russia. Markets remain concerned that inventory levels have not been drawn down at a pace fast enough to reduce a global glut. The WTI crude oil price today dipped 2.5%. Brent crude fell 2.1%.
• But the big news is The digital currency reached to a record high Tuesday on news that demand is surging in Japan. Bitcoin added roughly 7% to start May to a record price just above $1,442 thanks to a regulatory change that makes the digital currency a legal means of payment in Japan. The recent rally has pushed the total "market capitalization" of all Bitcoin in circulation at roughly $25 billion.

Four Stocks to Watch Monday: AAPL, MO, MSFT, ANGI

• Apple Inc. (Nasdaq: AAPL) added 0.6% as Wall Street builds up for the company's earnings report after the bell. Analysts are also very optimistic that tax reform – including a provision that would allow companies to repatriate foreign cash holdings – would be a boon to AAPL stock. Remember, it was less than a year ago that Wall Street analysts were projecting doom and gloom for Apple investors. Take a look back at their track record and how our projections far outperformed Wall Street's record of failure.
• Microsoft Corp. (Nasdaq: MSFT) held a press conference Tuesday where it unveiled a roster of new products and software offerings. The company displayed "Windows 10 Cloud," which is aimed at the education market. MSFT stock fell 0.2% on the day.
• Shares of Altria Group Inc. (NYSE: MO) climbed 0.07% despite the fact the company fell well short of earnings expectations. The company reported weaker than expected cigarette shipment volumes. It also said its profits were hit by a voluntary recall of smokeless tobacco products.
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• Shares of Angie's List Inc. (Nasdaq: ANGI) rallied more than 61% on news that the company will be purchased by internet giant IAC/InterActiveCorp (Nasdaq: IAC). The deal for the consumer review firm is expected to be worth more than $500 million.
• Look for earnings reports after the bell from First Solar Inc. (Nasdaq: FSLR), FireEye Inc. (Nasdaq: FEYE), Devon Energy Corp. (NYSE: DVN), Weight Watchers International Inc. (NYSE: WTW), FMC Corp. (NYSE: FMC), Papa John's International Inc. (Nasdaq: PZZA), Boyd Gaming Corp. (NYSE: BYD), and Olin Corp. (NYSE: OLN).

Wednesday's U.S. Economic Calendar (all times EDT)

• MBA Mortgage Applications at 7 a.m.
• ADP Employment Report at 8:15 a.m.
• Gallup U.S. Job Creation Index at 8:30 a.m.
• Three-Year Note Announcement at 8:30 a.m.
• 10-Year Note Announcement at 8:30 a.m.
• 30-Year Bond Announcement at 8:30 a.m.
• Treasury Refunding Announcement at 8:30 a.m.
• PMI Services Index at 9:45 a.m.
• ISM Non-Manufacturing Index at 10 a.m.
• EIA Petroleum Status Report at 10:30 a.m.
• FOMC Meeting Announcement at 2 p.m.

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Garrett Baldwin

About the Author

Browse Garrett's articles | View Garrett's research services

Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.

Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.

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