US close: Stocks edge higher on FOMC minutes, NFP revision
US stocks edged higher on Wednesday, after minutes from the most recent Federal Reserve policy meeting and a downward revision to labour-market data cemented expectations for an interest-rate cut in September.
The Dow rose 0.14% to 40,890.49, the S&P 500 gained 0.42% to 5,620.85 while the Nasdaq advanced 0.57% to 17,918.99.
Minutes from the 30-31 July Federal Open Market Committee meeting released at 1400 EDT revealed that the "vast majority" of Fed officials thought it would "likely be appropriate" to ease monetary policy in September, as long as inflation trends continue as projected.
"Stocks stayed firmly in the green overnight as the Fed minutes all but locked in a September rate cut, especially with recent inflation data paving the way. But the surprise cameo from the NFP revision stole the show, sending bond yields on a downward spiral and delivering a body blow to the dollar," said Stephen Innes, managing partner at SPI Asset Management.
The US economy created 818,000 fewer jobs than originally reported throughout the 12 months ended 31 March, according to the Labor Department's preliminary annual benchmark revision. The Bureau of Labor Statistics stated annual job growth was nearly 30% less than the 2.9m initially reported for the period and marked the largest revision to total payrolls since 2009.
The 10-year US Treasury yield dropped to a low of 3.765% after the data, down from 3.818% on Tuesday, before recovering slightly by the close; while the US Dollar Index fell continued its downward path to its lowest levels since January.
Attention will now shift to the Federal Reserve's economic symposium in Jackson Hole, Wyoming, on Friday with chairman Jerome Powell expected to speak on the central bank's current opinion of the US economy.
Elsewhere on the macro front, US mortgage applications crashed 10.1% in the week ended 16 August, according to the Mortgage Bankers Association of America, reversing much of the prior week's 16.8% increase. Applications to refinance a mortgage were down 15% despite a five basis point drop in benchmark mortgage rates to a fresh 15-month low, while applications to purchase a home fell 5%.
Retailers in focus
Shares in Target surged 11% after the discount retail giant posted a big quarterly earnings beat and upgraded its full-year profit outlook, even though it said full-year sales growth would be in the lower end of its guided range. Earnings per share for the second quarter surged 40% to $2.57, smashing the $2.18 expected by the market.
Heading the other way was department store Macy's which tumbled 12% after cutting its full-year sales forecast as it delivered a mixed second-quarter report in which profits beat forecasts but sales came up short.
US-listed shares of Chinese ecommerce group JD.com tanked 4% after Walmart signalled its intention to dispose of its stake worth $3.7bn, causing the stock of the American retailer to rise 1%.
Meanwhile, TJ Maxx owner TJX Companies rose 6% after beefing up its full-year profit projections after a forecast-beating second quarter.
Dow Jones - Risers
Intel Corp. (INTC) $21.41 2.00%
McDonald's Corp. (MCD) $289.76 1.43%
3M Co. (MMM) $129.23 1.20%
Walt Disney Co. (DIS) $90.72 1.09%
Walmart Inc. (WMT) $75.24 0.94%
Home Depot Inc. (HD) $370.46 0.87%
Johnson & Johnson (JNJ) $161.46 0.79%
Merck & Co. Inc. (MRK) $116.03 0.77%
Boeing Co. (BA) $173.43 0.77%
International Business Machines Corporation (CDI) (IBM) $197.27 0.60%
Dow Jones - Fallers
Walgreens Boots Alliance, Inc. (WBA) $10.39 -3.17%
American Express Co. (AXP) $246.26 -2.68%
Unitedhealth Group Inc. (UNH) $578.07 -0.44%
Salesforce.Com Inc. (CRM) $261.09 -0.29%
Goldman Sachs Group Inc. (GS) $496.71 -0.18%
Microsoft Corp. (MSFT) $424.14 -0.16%
Procter & Gamble Co. (PG) $170.16 -0.15%
Caterpillar Inc. (CAT) $343.04 -0.10%
Apple Inc. (AAPL) $226.40 -0.05%
Travelers Company Inc. (TRV) $216.92 -0.05%
S&P 500 - Risers
Keysight Technologies Inc. (KEYS) $157.81 13.88%
Target Corp. (TGT) $159.25 10.34%
Coty Inc. Class A (COTY) $10.13 6.30%
TJX Companies Inc. (TJX) $120.23 6.11%
Albemarle Corp. (ALB) $88.54 5.20%
Gap Inc. (GPS) $24.55 4.38%
Ross Stores Inc. (ROST) $153.95 4.23%
Bath & Body Works, Inc. (BBWI) $34.58 4.22%
Leggett & Platt Inc. (LEG) $12.47 3.83%
D. R. Horton Inc. (DHI) $186.46 3.81%
S&P 500 - Fallers
Macy's Inc. (M) $15.45 -12.91%
Franklin Resources Inc. (BEN) $19.78 -12.56%
Walgreens Boots Alliance, Inc. (WBA) $10.39 -3.17%
Nordstrom Inc. (JWN) $21.43 -3.16%
H&R Block Inc. (HRB) $64.55 -3.08%
American Express Co. (AXP) $246.26 -2.68%
Equinix, Inc. (EQIX) $817.99 -1.43%
Discover Financial Services (DFS) $133.21 -1.40%
Keycorp (KEY) $16.44 -1.32%
Citigroup Inc. (C) $60.53 -1.27%
Nasdaq 100 - Risers
Ross Stores Inc. (ROST) $153.95 4.23%
Trip.com Group Limited (TCOM) $42.99 4.14%
Take-Two Interactive Software Inc. (TTWO) $160.07 3.40%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $380.92 3.22%
Microchip Technology Inc. (MCHP) $82.81 3.15%
eBay Inc. (EBAY) $58.68 3.06%
Texas Instruments Inc (TXN) $208.37 2.88%
NetEase Inc. Ads (NTES) $92.59 2.63%
Intel Corp. (INTC) $21.41 2.00%
Baidu Inc. (BIDU) $89.74 2.00%
Nasdaq 100 - Fallers
JD.com, Inc. (JD) $27.02 -4.15%
Walgreens Boots Alliance, Inc. (WBA) $10.39 -3.17%
Biomarin Pharmaceutical Inc. (BMRN) $92.57 -1.35%
Hologic Inc. (HOLX) $80.02 -1.10%
Alphabet Inc. Class A (GOOGL) $165.85 -0.80%
Alphabet Inc. Class C (GOOG) $167.63 -0.79%
Charter Communications Inc. (CHTR) $345.19 -0.61%
Paypal Holdings Inc (PYPL) $71.46 -0.60%
Regeneron Pharmaceuticals Inc. (REGN) $1,185.34 -0.58%
Qurate Retail Inc. (QRTEA) $0.61 -0.57%