(The Closing Bell will be updated sometime after 4:00 PM CDST to include the latest updates from IBD and Bloomberg Evening Briefing.)
FYI: U.S. stocks swung between small gains and losses after the Federal Reserve left interest rates unchanged and reiterated it will stay patient with rates amid a mixed economic backdrop.
The Dow Jones Industrial Average edged down 162 points, or 0.61%, to 26429, having entered Wednesday’s session 0.9% below last year’s record. The S&P 500 fell 0.75% on the first day of trading in May, with stocks coming off one of their best four-month starts to a year ever. An advance Wednesday would mark the S&P 500’s fourth consecutive record close. The broad equity gauge is up 17% for the year.
The tech-laden Nasdaq Composite lost 0.57% and was slightly below Monday’s record.
The central bank noted Wednesday that some key economic activity slowed in the first quarter, potentially boosting confidence that it won’t change its stance as investors weigh a mixed stretch of data. Many expect upcoming economic figures to dictate’s the Fed’s next change in rates, a trend that has pushed investors to seek out risk across asset classes.
One of the most recent economic data points troubling some analysts was the Institute for Supply Management’s manufacturing index for April, which came in softer than economists had expected Wednesday, signaling a slowdown in factory activity.
Prices of copper, oil and other materials vital for the construction and transportation industries fell, a sign that some investors remain wary of a decline in economic activity or setback in U.S.-China trade talks.
The S&P 500 energy and materials sectors fell about 1% Wednesday, with U.S. crude-oil prices declining after inventory figures showed a larger-than-expected increase in stockpiles last week.
Figures Wednesday also showed the U.S. private sector added 275,000 jobs last month, nearly 100,000 more than consensus expectations. Analysts were looking ahead to Friday’s jobs report for the latest gauge of hiring across the U.S. economy.
The yield on the benchmark 10-year U.S. Treasury note also fluctuated and was recently at 2.502%, according to Tradeweb, down from 2.505% a day earlier. Bond yields fall as prices rise and tend to decline when investors are worried about economic growth and seeking safety in ultrasafe Treasurys.
Meanwhile, shares of Apple , CVS Health and Mondelez climbed following the companies’ first-quarter earnings results, the latest example of better-than-feared numbers boosting stocks.
Apple shares climbed 6.6% after the iPhone maker posted a smaller-than-expected drop in quarterly profit and sales. The company also said a downturn in China showed signs of easing, an encouraging sign for investors still wary of slowing economic activity overseas.
Although Google parent Alphabet tumbled Tuesday following its first-quarter results, Apple joined Amazon.com, Microsoft, Facebook and Twitter in the group of leading internet stocks to rise following earnings reports.
Stock markets in Japan, China, Korea and across most of mainland Europe were shut for the May Day holiday, but with Danish and U.K. stocks trading, the Stoxx Europe 600 inched down less than 0.1%, extending a stretch of quiet trading.
Regards,
Ted
MarketWatch:
https://www.marketwatch.com/story/stock-futures-point-to-more-records-as-apple-results-cheer-investors-2019-05-01/printWSJ:
https://www.wsj.com/articles/global-markets-quiet-for-may-day-ahead-of-fed-decision-11556698081Bloomberg:
https://www.bloomberg.com/news/articles/2019-04-30/stock-futures-rise-on-apple-dollar-yields-dip-markets-wrap?srnd=premiumIBD:
CNBC:
https://www.cnbc.com/2019/05/01/stock-market-federal-reserve-meeting-outcome-in-focus.htmlReuters:
https://www.reuters.com/article/us-usa-stocks/wall-street-pauses-ahead-of-fed-decision-after-apple-led-rally-idUSKCN1S73R3U.K.:
https://uk.reuters.com/article/uk-britain-stocks/oil-firms-exporters-drag-ftse-100-while-sainsburys-lse-outshine-idUKKCN1S73BPEurope: (Closed)
Asia: (Limited)
https://www.marketwatch.com/story/australian-stocks-rise-with-most-asian-markets-closed-for-holiday-2019-04-30/printBonds:
https://www.cnbc.com/2019/05/01/us-bonds-federal-reserve-meeting-in-focus.htmlCurrencies:
https://www.cnbc.com/2019/04/30/forex-market-china-pmi-data-fed-meeting-in-focus.htmlOil:
https://www.cnbc.com/2019/05/01/oil-markets-us-stockpiles-global-markets-in-focus.htmlGold
https://www.cnbc.com/2019/05/01/gold-markets-equities-the-fed-in-focus.htmlWSJ: Markets At A Glance:
https://markets.wsj.com/usMajor ETFs % Change:
https://www.barchart.com/etfs-funds/etf-monitorSPDR's Sector Tracker:
http://www.sectorspdr.com/sectorspdr/tools/sector-trackerSPDR's Bloomberg Sector Performance Pie Chart:
https://www.bloomberg.com/markets/sectorsCurrent Futures:
https://finviz.com/futures.ashx 
Comments
Re the markets. Weird day for those of us who like to look at the minutia. Commodities got clocked pretty much across the board. Most blood I’ve seen in a while in oil and miners together. Some funds that usually buck the trend with clever strategies underperformed the S&P today. DSENX and KCMTX both dropped about 1%. PRWCX lost .70%. Fixed income, usually strong on a turbulent day like this, was flattish from what I can observe.
None of the day’s action seems to add up IMHO. I’d guess investors are still trying to digest the day’s Fed statement and remarks by Powell at his follow-up press conference,
FWIW