U.S. shares were mostly lower on Thursday, the busiest day of the fourth quarter season, a day after the Federal Reserve said the price increase was pausing and that the next political move would depend on economic data.
How do benchmarks work? Dow Jones Industrial Average
fell 46 points, or 0.2% to 24,967, while the S & P 500
SPX, + 0.74%
rose by 1
meanwhile rose by 91 points, or 1.3% to 7.217.
Read: Investors in stock markets need to prepare for declining investment in business, warn analysts
What is market movement?
The Federal Reserve said it would be a "patient" with interest rates at the end of its two-day meeting on Wednesday, which means it may be at the end of the campaign to raise interest rates. The central bank further surprises investors by issuing a separate statement on its $ 4 trillion balance sheet, indicating that the removal of this asset portfolio may end earlier than expected. The central bank has identified market turmoil as one of the main reasons for its soft tone in politics.
Read: How the Fed made a rally on the stock market and gained the US dollar
Taken together, dynamic points show a more favorable position, at least for the time being, by Fed Chairman Jerome Powell and his politicians. This tone should encourage investments in risky assets if it does not raise concerns that other unforeseen factors, including a slow global economy, are beginning to persecute politicians.
Thursday's trade comes a day before the day of the non-financial payroll report, which can give market monitors more clues about health on the labor market – a constant source of strength during this campaign.
At the same time, the publication of corporate quarterly results continues at a rapid pace, with about three dozen components of the S & P 500 aiming to report earnings on the busiest day of the busiest week of profits.
In trade, market watchers watched developments between the US and China as the authorities tried to build a framework for settling tariff disputes on the last day of the latest talks. President Donald Trump published on Thursday that no final settlement would be reached "until my friend President You and I meet in the near future to discuss and agree on some of the many years of hard times . "
What do the strategists say?
"We had a big day yesterday, and now we see that markets are doing this today," Mark Travis, chief executive of Intrepid Capital, told MarketWatch.
The key factor is the surprisingly robust Fed statement that put the final details in a quarterly plan yesterday, from worries about rising domestic inflation to worrying about slowing global growth sinking the US economy.
"Earlier I thought Powell was more convinced and would give us constant doses of lesser balance and would feed on increases in funds, but it all came out the window," Travis said.
"Fed Chairman Jerome Powell has provided investors with a late Christmas gift today with a frank tone on the interest rate trajectory and flexicurity balancing plans," said Lindsey Bell, an investment strategist at CFRA's investment strategy on Thursday. "Powell acknowledged that financial conditions tightened in the fourth quarter and the recognition of global economic growth deserve monetary policy attention," she said.
Facebook Inc .
Shares rose 13% in early Thursday after the company released its Wednesday earnings report, which showed a record profit while the company added 1 million US daily users and Canada. The shares of General Electric Co. GE, + 14.43%
rose 14.5% after the industrial conglomerate reported a fourth-quarter profit that missed expectations, but earnings and cash flow beat. If the stock can keep its profit, it will be the best performance for one day in almost a decade, according to Dow Jones Market Data.
Shares of PayPal Holdings Inc .
fell 3.7% after the payout company released a weak forecast for the current quarter.
DowDuPont Inc. .
said sales were unchanged in the last quarter, as lower consumer demand for appliances and car products, as well as falling oil prices, manufacturer's top line. Shares declined 7.7% on Thursday, helping Dow. UPS, + 5.51%
rose 6% on Thursday after the logistics company posted above consensus gains before opening the market
United Parcel Service
Altria Group Inc. .
MO, + 0.86%
shares are in focus Thursday, after the company responds to consensus estimates of earnings and revenue for the fourth quarter. The stock rose by 1.9%. Northrop Grumman Corp. .
shares fell 1.2% after the defense contractor reported fourth quarter profit, which exceeded expectations, but provided a negative outlook.
Charter Communications, Inc. .
CHTR, + 15.09%
Shares grew 14.8% after the broadband and cable operator reported stronger than expected earnings for the fourth quarter. COP, + 2.60%
were in focus on Thursday after the energy company reported fourth quarter, which surpassed Wall Street's expectations. Shares rose 3.8% in early Thursday after falling by 6% in the past three months
Shares of Raytheon Co .
declined 2.5% on Thursday after fourth-quarter revenue fell from consensual expectations
Sprint Corp .
Shares of S, + 2.15%
were 0.2% after the communications firm reported third-quarter fiscal revenue above analysts' expectations, but said the company had lost money in the quarter.
investors expect reports from Amazon.com Inc. .
AMZN, + 2.73%
SYMC, + 0.43%
and Aflac Inc.
AFL, + 0.97%
reported after Thursday. BSS, + 2.17%
said his partner from Blackstone Infrastructure Partners has agreed to acquire a majority stake in Tallgrass Energy for about 3 , $ 3 billion in cash.
What are the data in the center of attention?
The number of Americans submitting new claims for unemployment benefits has risen by 53,000 to 253,000 in the last week of January, the Labor Ministry reported on Thursday. This is well above the consensus expectations of 216,000, according to a MarketWatch study by economists, although the leap is probably due in part to the seasonal factors that will fade.
Wage growth accelerated in the fourth quarter of 2018. The fastest rate of 11 years, the Labor Ministry reported in January
The Chicago Purchasing Managers Index for January reached 56.7 from 65.4 in December
] Sales of new homes in November rose to a seasonally adjusted annual rate of 657,000, compared to 562,000 in October, above economists' expectations for 563,000 new homes, according to a study by MarketWatch.
How were US shares traded yesterday?
On Wednesday, the Dow grew by 434.90 points, or 1.8%, to finish at 25,014.86, shrinking from a high of 25,109.10. The S & P 500 rose 41.05 points, or 1.6 percent to 2,681.05, and the Nasdaq Composite Index reached 154.79 points, or 2.2 percent, to 7,183.08 points.
All three benchmarks are closed at their highest levels since December 6, according to Dow Jones Market Data.
How are they traded on other markets?
Asian shares closed on Thursday as higher, with Japan's Nikkei 225 index rising 1.6% and the Shanghai Composite index closed 0.4% a day
with the Stoxx Europe 600
down 0.3% while FTSE 100
UKX, + 0.35%
is up 0.4%. Crude oil
CLH9, + 1.75%
prices were higher, while gold prices
GCH9, + 0.82%
gathered more than 1% and the US dollar
DXY, + 0.10%
scored higher than its trading partners.
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