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Stocks - S&P Slips as Virus Fears Persist, Fed Stands Pat on Rates

Published 2020-01-29, 04:08 p/m
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Investing.com – The S&P closed lower Wednesday as the Federal Reserve left interest rates unchanged and investors digested mixed corporate earnings.

The S&P 500 fell 0.09%, while the Nasdaq Composite rose 0.06% and the Dow Jones Industrial Average added 0.04%.

The Federal Reserve left interest rates unchanged and signaled that it would continue with its repo funding through the second quarter of the year.

"We expect (reserves to reach an ample level) during the second quarter and our plan, as we do that, is as those purchases get to that level we believe we can gradually reduce them and we believe we can also gradually reduce repo as we reach an ample level," Federal Reserve Chairman Powell said.

The Fed's unchanged stance on monetary policy arrived as the busiest day of earnings unfolded.

Apple (NASDAQ:AAPL) closed at record highs, up 2%, after its earnings topped estimates a day earlier.

McDonald’s (NYSE:MCD), meanwhile, rose 2% after its quarterly results and U.S. comparable-store sales beat Wall Street estimates, driven by price hikes at its U.S. stores.

GE (NYSE:GE) delivered a beat on both the top and bottom lines, led by strength in its aviation business, sending its share price 10% higher. The company also reported free cash flow of $3.9 billion, exceeding its target for the full-year.

Boeing (NYSE:BA) shrugged off weaker-than-expected earnings, rising about 2%, as the aircraft maker posted its first annual loss in more than decades, owing to losses from the grounding of its 737 Max jets.

Falling energy stocks kept a lid on gains in the broader market pressured by a fall in oil prices on a larger-than-expected build in U.S. weekly supplies at a time when investors fret oil demand will take a hit from falling tourism as the spread of the virus in China gathers pace.

The death toll in China rose to 132 overnight, with reported cases of virus topping 6,000, raising fears of contagion as Chinese authorities are struggling to contain the outbreak.

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