Wall Street rises as Fed's Williams cements rate-cut expectations

Fed Rate Cut Probability July 2019 Chart

Fed Rate Cut Probability July 2019 Chart

Major indices turned up into green territory in the afternoon after New York Federal Reserve President John Williams said "it pays to act quickly to lower rates at the first sign of economic distress".

Williams said that when rates and inflation are low, policymakers can not afford to keep their "powder dry" and wait for potential economic problems to materialise.

"He's toeing the party line at the Fed, basically implying that an insurance rate cut is the right thing to do for the economy at this point in time", said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance in Charlotte, North Carolina, referring to Williams' comments.

US stock indexes edged lower on Thursday as investors awaited more developments around trade, while Netflix posted a surprise drop in USA subscribers, kicking off earnings for the FAANG group of stocks on a sour note. The Nasdaq Composite was down 25.62 points, or 0.31%, at 8,159.59. "I think that investors have viewed these large-cap growth technology companies as somewhat defensive".

Railroad operator Union Pacific rose 4.5% after reporting earnings that came in well ahead of what analysts were expecting.

The Dow Jones Industrial Average .DJI rose 8.61 points, or 0.03%, to 27,228.46, the S&P 500 .SPX gained 9.48 points, or 0.32%, to 2,993.9 and the Nasdaq Composite .IXIC added 17.75 points, or 0.22%, to 8,202.95.

'CS gas attack' on London Underground train at Oxford Circus
Police have started a manhunt after a cannister of tear gas was thrown onto a packed Tube train in London today. CS gas is more commonly known a tear gas and can cause severe eye and respiratory pain.

EBay Inc jumped 5.4% after the e-commerce company posted better-than-expected quarterly revenue and profit, helped by growth in its advertising and payments businesses. Morgan Stanley rose 0.7% after posting a better-than-expected quarterly profit and wrapped up earnings from big United States banks.

Analysts now estimate S&P 500 year-on-year quarterly earnings will decline 0.1 per cent, according to Refinitiv.

UnitedHealth Group Inc fell 2.2% following comments that the insurer would continue with its point-of-sale rebates, a week after the Trump administration pulled back an ambitious proposal to ban drug rebates.

Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S., July 12, 2019.

Declining issues outnumbered advancers for a 1.20-to-1 ratio on the NYSE and for a 1.05-to-1 ratio on the Nasdaq.

The S&P index recorded 18 new 52-week highs and four new lows, while the Nasdaq recorded 39 new highs and 63 new lows.

Recommended News

  • Marvel confirms Black Widow movie starring Scarlett Johansson arrives next year

    Marvel confirms Black Widow movie starring Scarlett Johansson arrives next year

    The worst kept secret in Marvel Studios history has now been made official: a Black Widow movie is coming, and it'll hit theaters in May 2020.
    Leroy Sane: No contact with Bayern Munich, says Pep Guardiola

    Leroy Sane: No contact with Bayern Munich, says Pep Guardiola

    Manchester City are looking to make it two pre-season wins from two against Wolves - and they can lift another trophy in the process.
    Kyle Korver agrees to one-year deal with Bucks

    Kyle Korver agrees to one-year deal with Bucks

    Korver split time between the Cavaliers and Jazz last season, averaging 8.6 points per game. In his career, he's made 42.9 percent of his 3-point shots.
  • Camera lens worth $13000 sold for $94 during Amazon Prime Day

    Camera lens worth $13000 sold for $94 during Amazon Prime Day

    The website reports that there were similar reports previous year , with camera equipment going for 90 percent off. This past Prime Day was the most successful one yet for Amazon - keeping in mind the "tradition" is still young.

    British Airways suspends flights to Cairo for 7 days as ‘precaution’

    Before regular flights between Moscow and Cairo were resumed in April 2018, Egypt had to seriously enhance security at airports. BBC Afrique's Pierre-Antoine Denis, in Cairo, reports that all other airlines that use the airport are operating normally.
    Westworld season 3: Tessa Thompson, Aaron Paul tease what's next

    Westworld season 3: Tessa Thompson, Aaron Paul tease what's next

    Okay, so that's clearly not going to be the name of whichever new park Stubbs is getting weaponry from, but it looks so damn cool. The new season also stars Tessa Thompson , Lena Waithe , Scott Mescudi and Marshawn Lynch , and will return next year.
  • New Juventus boss Sarri: I like Pogba very much

    New Juventus boss Sarri: I like Pogba very much

    Manchester United are now in Singapore for the next stage of their pre-season tour where they'll face Inter Milan tomorrow. We round up the front and back pages across Europe as Friday sees the transfer rumour mill crank into gear once again.
    Rockets' James Harden Says He's 'Good' With Chris Paul

    Rockets' James Harden Says He's 'Good' With Chris Paul

    We're unlikely to ever get the real story from behind the scenes now that Paul and Harden are no longer teammates. Me and Chris had constant communication and we're good".
    Severe thunderstorm watch in effect for Guelph, surrounding areas

    Severe thunderstorm watch in effect for Guelph, surrounding areas

    A line of strong to severe thunderstorms has moved into southwestern Ontario and is expected to race eastward this evening. Environment Canada has issued a severe thunderstorm warning for London, Parkhill, Strathroy, Komoka and Middlesex County.
  • Google to Pay Millions Over YouTube Child Privacy Violations

    Google to Pay Millions Over YouTube Child Privacy Violations

    Per the settlement, Google will pay several millions of dollars in fines, but exact figures remain undisclosed, the report says. Over 1.8 billion users logged-in on YouTube every month, according to a Business Insider report from previous year .
    Marvel Introduces Eternals At Comic-Con

    Marvel Introduces Eternals At Comic-Con

    Game of Thrones' Richard Madden will play Ikaris, with Ma Dong-Sek (also known as Don Lee ) cast as Gilgamesh. Right now, though, we only have an inkling about what to expect from the Chloe Zhao-directed MCU flick.

    British Airways suspends Cairo flights as security precaution

    The airline was also among several major carriers to announce in June they would reroute flights to avoid the Strait of Hormuz. The agency said an estimated 415,000 British nationals visited Egypt in 2018 and that most visits were "trouble free".

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.