US stocks mixed at close
Fed stands pat on rates
Fed's next chair becomes focus
US shares closed Wednesday mixed, with the Dow Jones Industrial Index up over 57 points at 23,435.
The S&P 500 was up 4.10 points at 2,579, while the tech heavy Nasdaq lost over 11 at 6,716.
In Toronto, the TSX added 3.74 , or 0.02% to stand at 16.029.
The oil price for US crude lost 0.20%, or US$54.27 a barrel.
As expected the Federal Reserve kept interest rates on 'hold', while attention now turns to who may become the next Fed chair. An announcement will be made tomorrow afternoon.
Why Powell is the 'boring' choice for Fed chair but best for stock market https://t.co/al4GZ9ANiZ
— CNBC (@CNBC) 1 November 2017
MID-SESSION
US stocks were mixed at mid-session as the Federal Reserve, as expected, stood pat on interest rates.
The Dow Jones added almost 49 points to 23,425, while the S&P500 added 4.54 at 2,579.
The tech heavy Nasdaq lost over 16 to 6,711. In Toronto, the TSX was up 2.61 to stand at 16,028.
"It was no surprise to see the Federal Reserve maintain interest rates, as the firming US economy sets the table for a likely rate hike in December," said Dennis de Jong, managing director at UFX.com,
"Speculation mounts, however, as to who will pull up the hot seat as the next Fed chair when President Donald Trump announces the nomination on Thursday.
“Current incumbent Janet Yellen’s first term is soon to end, and Trump has interviewed Yellen, Fed Governor Jerome Powell and three others for the post. Powell is heavily favoured to secure the Fed’s top job."
11am: US manufacturing activity expanded further in October
US manufacturing activity expanded further in October as output and new orders rose, according to Markit.
Markit’s final reading on the purchasing mangers’ index for the US manufacturing sector was raise to 54.6 from previous estimate of 54.5, compared to 53.1in September. Economists had expected the reading to remain unchanged.
Separately ISM’s US manufacturing index fell to 58.7 in October from 60.8 in September, missing forecasts of 59.5 but still above the 50 reading that indicates an expansion.
OPEN
US benchmarks started out of the box on Wednesday on the front foot, with the Dow Jones up over 125 points at 23,502.
The US stock rally seems well and truly back on, with the S&P 500 also up - almost 12 points at 2,587.
The Nasdaq was also higher - up over 21 points to stand at 6,747.
In the oil market, US crude (West Texas Intermediate) added 1.05% to stand at US$54.94 a barrel.
It comes as traders await decision the next interest rate decision from the Federal Reserve, due today after their two day meeting.
The consensus is that they will not raise the rate, but keep on hold, and the statement released at the culmination of the meeting will be closely watched.
In equities, Estee Lauder Companies Inc (NYSE:EL) was a notable gainer, adding 10.14% to stand at US$122.69 each.
Estee Lauder Companies Inc (NYSE:EL) saw its shares edge higher in premarket trade after the company gave an upbeat outlook and its first quarter results beat market expectations.
The make-up and skincare company said in a statement that net income for the quarter to September 30 rose to US$427mln, or US$1.14 a share, from US$294mln, or 79 US cents a share, year-on-year.
Its revenue shot up by 14% to US$3.27bn from US$2.87bn, coming above market consensus for US$3.16bn, boosted by its largest divisions, skin care and make-up both recording above expectations sales.
On the downside, Envision Healthcare Corp (NYSE:EVHC) shares plunged over 36% to US$27.12 having slumped after the bell too, after it posted earnings and revenue, which were below analysts' expectations.
Looking ahead to the Fed statement, the focus will be on any hints in its statement about future rate hikes.
“With it already being considered a forgone conclusion that US interest rates will be left unchanged in November, and with no press conference scheduled by Janet Yellen, today’s FOMC meeting could be a snoozer,” said Lukman Otunuga, research analyst at FXTM.
“Although the lack of excitement precipitated by a press conference by Yellen and no new quarterly economic projections may put a cap on the spice, investors are likely to devote much of their attention to gleaning fresh insights on the Federal Reserve’s tightening plan.
“Looking beyond the FOMC statement this evening, Trump will be back in the spotlight on Thursday, as he appoints the next head of the Federal Reserve. With Trump expected to appoint Jerome Powell, who is seen as a dove, it will be interesting to see how the Dollar reacts.”
Estee Lauder jumps as much as 4.7% in early trading as Chinese expansion helps boost outlook https://t.co/MVkgpn3DRr pic.twitter.com/O3fud7c8Fg
— Bloomberg (@business) 1 November 2017