How are the benchmarks faring?
The Dow Jones Industrial Average DJIA, +0.35% rose 149 points, or 0.6%, to 26,063, while the S&P 500 index SPX, +0.41% added 16 points, or 0.6%, to 2,849. The Nasdaq Composite Index COMP, +0.51% rose 50 points, or 0.7%, to 7,765.
What’s driving the market?
While no change in rates is expected, investors will be focused on the Fed’s policy statement, remarks by Chairman Jerome Powell at his news conference, and policymakers’ forecasts of future rate moves. Of particular interest is whether the Fed will announce plans to bring its balance-sheet runoff effort to an early end.
Investors on Monday mostly shrugged off news reports that a meeting between President Donald Trump and Chinese leader Xi Jinping to formally end a U.S.-China trade dispute is unlikely to occur until June. A meeting had previously been indicated for as early as this month.
New orders for American-made goods rose 0.1% in January, the Commerce Department reported. The growth was below the 0.4% increase in factory orders expected by economists polled by MarketWatch, and matches the 0.1% increase in December.
What are analysts saying?
“It’s been a fairly stable trading environment, as the market has largely built in expectations that we’ll get some kind of deal with China and it isn’t anticipating any changes to interest-rate policy from the Fed,” Patrick Healy, president of Caliber Financial Partners, told MarketWatch.
“The Federal Reserve begin their two day meeting today, and some dealers are anticipating a neutral update from the U.S. central bank,” said David Madden, market analyst at CMC Markets UK, in a note. “In recent months, the Fed have rowed back on their hawkish rhetoric and have moved more towards a middle-of-the-road position, and an absence of hawkish language is likely to lift investment sentiment.”
What stocks are in focus?
Shares of Michaels Cos. MIK, +11.96% jumped 14%, after the arts-and-crafts retailer reported fiscal fourth-quarter earnings and revenue that surpassed Wall Street expectations, though the company disappointed in its 2019 outlook.
Revlon Inc. REV, -3.51% shares slid 4.8% after the cosmetics maker reported unaudited fourth-quarter and 2018 earnings, saying it spotted a “material weakness” in its internal controls over financial reporting for 2018. The company said it would file its 2018 Form 10-K no later than March 29, while saying that financial results aren’t expected to change.
How are other markets trading?
In Europe, stocks rose with the Stoxx Europe 600 SXXP, +0.57% adding 0.6%.
–William Watts contributed to this report
The SPDR Dow Jones Industrial Average ETF (DIA) was trading at $260.03 per share on Tuesday afternoon, up $1.04 (+0.40%). Year-to-date, DIA has gained 5.99%, versus a 6.71% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of MarketWatch.