The stock markets in the United States gained today amid generally strong earnings results. The Dow Jones Industrial Average (DJIA) gained 0.52%, the S&P 500 climbed 0.47%, and the NASDAQ rose 0.72% today.
In an interview with Bloomberg, Steven Rees, head of U.S. equities at JPMorgan Private Bank commented, “Earnings have been strong and for the most part, companies have been upbeat with their full-year earnings outlooks. Data on earnings and today’s data on consumer confidence means you won’t hear much change from the Fed. The next catalyst in the market will be Friday’s jobs report.”
The members of the Federal Reserve Open Market Committee started their two-day meeting in Washington today. Some economists are speculating that the policy makers might announce another reduction to the monthly bond-buying program after their meeting.
Last month, the Federal Reserve reduced the monthly bond-buying program to $55 billion and stated its intention to continue the reduction at “measured steps.
Patrick Spencer, head of equity sales at Robert W. Baird & Co. said the “economy is in a sweet spot.” He added, “Growth isn’t so exuberant that the Fed needs to withdraw their support quickly, and not so anemic that they need to be concerned about further weakening.”
- Dow Jones Industrial Average (DJIA)- 16,534.47 (+0.52%)
- S&P 500- 1,878.23 (+0.47 %)
- NASDAQ- 4,103.54 (+0.72%)
- Russell 2000- 1,119.92 (+0.26%)
- EURO STOXX 50 Price EUR- 3,208.68 (+1.35%)
- FTSE 100 Index- 6,769.91 (+1.04%)
- Deutsche Borse AG German Stock Index DAX- 9,584.12 (+1.46%)
- Nikkei 225- 14,288.23 (-0.98%)
- Hong Kong Hang Seng Index- 22,453.89 (-1.45%)
- Shanghai Shenzhen CSI 300 Index- 2,158.47 (+1.10%)
Stocks in Focus
The stock price of Gogo Inc (NASDAQ:GOGO), a holding company that provides in-flight connectivity and wireless in-cabin digital entertainment solutions plummeted 28% to $13.12 per share due to potential competition from AT&T Inc. (NYSE:T). The second largest wireless carrier in the United States announced its partnership with Honeywell International Inc. (NYSE:HON) to provide 4G LTE internet access on airplanes late next year. The shares of AT&T Inc. (NYSE:T) slightly increased to $35.42 per share.
Sprint Corporation (NYSE:S) rose 11.31% to $8.27 per share after the company reported better than expected financial results for the first quarter. The company also announced its partnerships with Spotify, HTC Corp (TPE:2498) and Harman International Industries Inc./DE/ (NYSE:HAR). Sprint will offer Spotify’s streaming music service as a bundle to its subscribers, and it will exclusively sell the special HTC One (M8) Harman Kardon edition smartphone.
The shares of Tripadvisor Inc (NASDAQ:TRIP) increased 4.59% to $80.83 per share after the company announced that its free travel app for iPhone and Android smartphones reached a milestone of 100 million downloads.