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Overnight Markets: Wall Street edges higher ahead of Fed rate decision

Investors shrugged of the landmark Trump-Kim summit to focus on a series of important central-bank meetings.

 
Overnight Markets: Wall Street edges higher ahead of Fed rate decision

US stocks ended slightly higher on Tuesday as investors shrugged off a landmark summit between President Donald Trump and Kim Jong Un to focus on a series of important central-bank meetings.

The Dow Jones Industrial Average declined two points, or 0.01%, to 25,321, the S&P 500 gained five points, or 0.17%, to 2,787 and the Nasdaq Composite added 44 points, or 0.57%, to 7,704.

Lack of detail in the Trump-Kim agreement about the path to denuclearisation on the Korean peninsula kept the market's moves in check throughout the day.

Beyond geopolitics, investors were focused on central-bank meetings this week. The Federal Reserve is expected to raise interest rates on Wednesday. The US central bank’s two-day meeting began on Tuesday.

In economic news, the consumer-price index for May rose 0.2%, the fastest pace in six years, reflecting a strong US economy and ultratight labour market that’s stoking inflation.

Among specific stocks, AT&T shares ended the trading day 0.5% higher ahead of a US court decision on whether to permit its $85 billion deal for Time Warner.

Twitter rallied 5% after JP Morgan analyst Doug Anmuth boosted his price target to $50.

Shares of Weight Watchers International Inc. soared 5.6% to a record high after a bullish call from JP Morgan.

Shares of Lands’ End Inc. climbed 27% after the retailer said its first-quarter sales got a 12% boost from sales of uniforms to Delta Air Lines Inc.

Tesla Inc. shares jumped 3.2% after chief executive Elon Musk announced on Twitter that the company will let go of about 9% of its workforce.

In Asia, shares eased on Wednesday in morning session as investors shifted their focus from Trump-Kim summit to the conclusion of the Fed’s June meeting later in the day.

Japan's Nikkei 225 rose 0.15%. Down Under, the S&P/ASX 200 declined 0.51%, with most sectors trading in negative territory.

Greater China markets came under pressure. In Hong Kong, the Hang Seng Index slipped 0.49% and on the mainland, the Shanghai composite edged down by 0.55%. Markets in South Korea were closed on Wednesday.

1 comment so far. Why not have your say?

SDRL

Jun 13, 2018 at 19:02

Just a heads up. Jonathon Farro the morning co anchor on Bloomberg AM is the best financial journalist in the media. Very smart intelligent and knowledgable about investing.

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