Stock futures climbed into slender gains Wednesday, amid a blitz of mixed earnings news, and ahead of the Fed’s afternoon rate policy announcement. Alphabet, Microsoft and Advanced Micro Devices were just a few of the big names rising on earnings. China-based stocks rebounded briskly from their three-day decline. And on the Dow Jones today, Boeing rallied while McDonald’s dipped after delivering reports.
Nasdaq 100 futures rose 0.4%, as rebounding China stocks Pinduoduo (PDD) and NetEase (NTES) leapt more than 5%. S&P 500 futures defended a 0.1% gain, as Dow Jones futures edged almost 0.1% above fair value. All of the big-three indexes had lost ground on Tuesday, cooling a bit after five-day rallies.
Google parent Alphabet (GOOGL) rumbled 3.8% higher as analysts hustled to raised price targets on the stock following a strong quarterly report late Tuesday. Susquehanna weighed in with a 3,600 price target, a full 36% above where shares finished on Tuesday. The IBD 50 and IBD Leaderboard stock is extended following a July 22 breakout.
Advanced Micro Devices (AMD) rallied 2.7% after reporting a 240% surge in second-quarter earnings and a 99% sales increase. Rosenblatt raised the stock’s price target to 150, nearly 65% above Tuesday’s closing price. AMD stock ended Tuesday less than 5% below a 95.54 buy point in a cup-with-handle base.
Dow Jones Today Boeing Rallies, McDonalds Dips
Boeing (BA) thundered up 5.5%, leading the Dow Jones today, after reporting a surprise profit during the second quarter — its first since 2019. McDonald’s (MCD) dipped a fraction, despite reporting a 40.5% increase in global comparable-store-sales for its second quarter. U.S. same-store-sales gained 25.9%, above expectations.
McDonald’s stock is sitting atop a six-day rally that lifted shares almost 9% from a July 19 low. The rally passed what IBD MarketSmith analysis charts as a 238.28 buy point in a flat base. Shares are extended, beyond the buy zone that runs to 239.80.
Bond Yields, Fed Meeting, Econ Data
Earnings powered the market’s early trade on Wednesday. But the Federal Reserve’s rate policy announcement, on the heels of the two-day Open Market Committee meeting, is likely to influence the session’s outcome. The announcement is set for 2 p.m. ET, followed at 2:30 p.m. ET by a press conference with Fed Chairman Jerome Powell.
No rate policy or stimulus strategy changes are expected, but investors are hoping for some signaling on the outlook for the Fed’s aggressive bond-buying…