Yahoo Finance Daily
Stocks end lower amid China headwinds, Fed minutes: Stock Market News Today
Wed Jul 05 2023Description
Traders analyzed the Federal Reserve's minutes from its June meeting, resulting in lower stock prices. Concerns about China's post-reopening recovery and updates from various companies were also discussed.
Insights
Federal Reserve's Decision
Some Fed officials favored a rate hike but decided on a pause during the June meeting. Almost all officials believed it would be appropriate to leave rates unchanged at 5.00% to 5.25%, but additional increases in the target federal funds rate are expected in 2023.
China's Economic Outlook
Investors are concerned about China's post-reopening recovery, particularly in the housing market. JP Morgan analysts expect growth momentum to stabilize and improve in Q3 and Q4, with a full-year GDP growth forecast of 5.5% and nominal GDP growth forecast of 4.6%.
Company Updates
Hertz stock received a buy rating from Jeffery's analysts, expecting higher pricing and margins compared to pre-pandemic levels. General Motors reported strong second-quarter sales with significant growth in electric vehicle sales. Constellation brand CEO predicts reduced Bud Light inventory for the fall drinking season. Walmart, Chipotle Mexican Grill, McDonald's, GE, and Lowe's have recently reached record highs or hit their highest closing prices ever.
Chapters
Market Analysis and Federal Reserve
00:01 - 04:41
- Stocks ended Wednesday's session lower as traders returned from the Independence Day break and analyzed the Federal Reserve's minutes from its June meeting.
- The S&P 500 finished down 0.2%, while the Dow Jones Industrial Average slipped by around 0.3%.
- The NASDAQ composite fell 0.1%.
- Some Fed officials favored a rate hike but decided on a pause during the June meeting.
- Almost all officials believed it would be appropriate to leave rates unchanged at 5.00% to 5.25%, but additional increases in the target federal funds rate are expected in 2023.
China's Post-Reopening Recovery
00:01 - 04:41
- Investors are concerned about China's post-reopening recovery, particularly in the housing market, which is a key source of weakness according to JP Morgan analysts.
- JP Morgan expects growth momentum to stabilize and improve in Q3 and Q4, with a full-year GDP growth forecast of 5.5% and nominal GDP growth forecast of 4.6%.
Company Updates
00:01 - 04:41
- Hertz stock edged up after receiving a buy rating from Jeffery's analysts who expect higher pricing and margins compared to pre-pandemic levels.
- General Motors reported strong second-quarter sales with U.S. deliveries jumping 18.8% compared to last year, including significant growth in electric vehicle sales.
- Constellation brand CEO predicts major retailers and distributors will reduce Bud Light inventory for the fall drinking season due to sagging sales.
- Walmart, Chipotle Mexican Grill, McDonald's, GE, and Lowe's have recently reached record highs or hit their highest closing prices ever.