U.S. stocks opened with small gains Thursday, the morning after the Federal Reserve cut interest rates for the second time this year. Traders will be on the lookout for headlines throughout the day as the U.S. and China are holding deputy-level talks on trade, with the goal of paving the way for high-level talks in early October.
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The Dow Jones Industrial Average was higher by about 70 points, or 0.3 percent. The S&P 500 and Nasdaq held similar gains.
| Ticker | Security | Last | Change | %Chg |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 27201.98 | +54.90 | +0.20% |
| SP500 | S&P 500 | 3014.16 | +7.43 | +0.25% |
| I:COMP | NASDAQ COMPOSITE INDEX | 8210.092573 | +32.70 | +0.40% |
Record highs are within reach for all three of the major averages. A print above the following levels would be the highest on record:
- S&P 500: 3,027.98
- Dow Jones Industrial Average: 27,398.68
- Nasdaq: 8,339.64
On Wednesday, the Fed cut its benchmark interest rate by 25 basis points to a range between 1.75 percent and percent, citing weakening exports and low inflation. Fed Chairman Jerome Powell said at a press conference following the decision that the central bank will “act as appropriate to ensure that the expansion remains on track.”
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Bank stocks opened little changed after rallying in the wake of Wednesday’s Fed decision.
| Ticker | Security | Last | Change | %Chg |
|---|---|---|---|---|
| C | CITIGROUP INC. | 70.04 | -0.05 | -0.07% |
| JPM | JP MORGAN CHASE & CO. | 119.88 | +0.12 | +0.10% |
| BAC | BANK OF AMERICA CORP. | 29.90 | -0.10 | -0.33% |
| WFC | WELLS FARGO & COMPANY | 48.95 | +0.02 | +0.04% |
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On the earnings front, Darden Restaurants was lower after reporting mixed quarterly results and same-store sales that fell short of estimates.
U.S. Steel was under pressure after saying it sees a loss of 35 cents a share for the three months ending in September, blaming resructuing costs and a fire at one of its facilities. The steelmaker also cut its outlook for the second half of the year.
| Ticker | Security | Last | Change | %Chg |
|---|---|---|---|---|
| DRI | DARDEN RESTAURANTS INC. | 122.53 | -4.60 | -3.62% |
| X | UNITED STATES STEEL CORPORATION | 10.72 | -1.73 | -13.86% |
Oil prices were higher Thursday after Iran Foreign Minister Javad Zarif said there would be “all out war” in the event of a military strike on his country. U.S. Secretary of State Mike Pompeo on Wednesday called the drone attacks on a Saudi oilfield an “act of war” by Iran. West Texas Intermediate and Brent crude oils were higher by at leat 1.2 percent.
Buying of Treasurys had the U.S. 10-year yield down 4 basis points at 1.757 percent.
In Europe, Britain’s FTSE, Germany’s DAX and France’s CAC were all higher.
Overnight, Japan’s Nikkei gained 0.4 percent Thursday after the country’s central bank kept monetary policy unchanged and held its key interest rate at minus 0.1 percent, as expected. Meanwhile, China’s Shanghai Composite gained 0.5 percent and Hong Kong’s Hang Seng fell 1.1 percent.
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In European trading, London’s FTSE rose 0.5 percent, Germany’s DAX added 0.2 percent and France’s CAC gained 0.5 percent.
FOX Business’ Ken Martin contributed to this report.
