US open: Stocks mixed following FOMC decision

Wall Street stocks were mixed early on Thursday after the Federal Open Markets Committee’s monthly policy meeting wrapped up yesterday.

As of 1500 BST, the Dow Jones Industrial Average was down 0.57% at 38,490.39, while the S&P 500 advanced 0.14% to 5,428.81 and the Nasdaq Composite came out the gate 0.60% firmer at 17,713.98.

The Dow opened 221.82 points lower on Thursday, extending losses recorded in the previous session as investors digested the Federal Reserve’s interest rate decision.

The US central bank kept its benchmark interest rate unchanged, as expected, but acknowledged that it had seen “modest further progress” towards hitting its 2% target level and stated that just one rate cut was coming before the end of 2024, down from the three it had originally signalled.

On the macro front, the number of people in the States filing for unemployment benefits moved higher during the week ended 8 June, according to the Department of Labor, which said initial unemployment claims increased by 13,000 in seasonally adjusted terms. Meanwhile, the four-week moving average, which aims to strip out week-to-week, jumped by 4,750 to 227,000. Secondary unemployment claims, those not being filed for the first time and referencing the week finishing on 1 June, rose by 30,000 to 1.82m.

Elsewhere, wholesale inflation in the US dipped somewhat unexpectedly last month. According to the Department of Labor, so-called final demand prices fell at a month-on-month pace of 0.2% in May (consensus: 0.1%). In terms of annual rates of change, the producer price index slowed from a 2.3% clip in April to 2.2% for May (consensus: 2.5%).

Goods prices accounted for all of the decline, dropping by 0.8% as energy costs fell back by 4.8% versus April. Food prices on the other hand only dipped by 0.1%, while services prices were flat over the month. Core producer prices were flat over the month (consensus: 0.3%).

Still to come, Federal Reserve Bank of New York president John Williams will deliver a speech at 1700 BST.

In the corporate space, Broadcom shares rallied after the chipmaker topped expectations with its Q2 trading performance and announced a ten-for-one stock split, while Dave & Buster's stock headed south after a Q1 revenue miss, and Tesla shares shot up after chief executive Elon Musk revealed shareholders looked set to approve his controversial $56.0bn pay package and a resolution to incorporate the electric carmaker in Texas.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Apple Inc. (AAPL) $216.14 1.44%
3M Co. (MMM) $102.03 0.81%
Home Depot Inc. (HD) $345.77 0.47%
Procter & Gamble Co. (PG) $165.58 0.24%
Nike Inc. (NKE) $93.89 0.22%
Walmart Inc. (WMT) $66.40 0.14%
International Business Machines Corporation (CDI) (IBM) $169.22 0.13%
Microsoft Corp. (MSFT) $441.53 0.11%
Visa Inc. (V) $270.35 0.01%
Dowdupont Inc. (DWDP) $0.00 0.00%

Dow Jones - Fallers

Intel Corp. (INTC) $30.20 -1.82%
Unitedhealth Group Inc. (UNH) $485.42 -1.55%
Salesforce.Com Inc. (CRM) $232.72 -1.31%
Caterpillar Inc. (CAT) $324.74 -1.21%
Chevron Corp. (CVX) $152.47 -1.13%
American Express Co. (AXP) $221.55 -1.11%
Walgreens Boots Alliance, Inc. (WBA) $15.37 -1.09%
Travelers Company Inc. (TRV) $205.10 -1.04%
Amgen Inc. (AMGN) $298.01 -1.02%
Johnson & Johnson (JNJ) $144.16 -0.86%

S&P 500 - Risers

Broadcom Inc. (AVGO) $1,721.40 15.10%
Arista Networks Inc. (ANET) $328.52 5.52%
Nvidia Corp. (NVDA) $129.27 3.21%
Qorvo, Inc. (QRVO) $111.62 2.67%
Kimberly-Clark Corp. (KMB) $138.55 2.49%
Chipotle Mexican Grill Inc. (CMG) $3,239.05 2.15%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $397.78 1.73%
eBay Inc. (EBAY) $54.10 1.72%
Skyworks Solutions Inc. (SWKS) $104.22 1.54%
Electronic Arts Inc. (EA) $137.40 1.53%

S&P 500 - Fallers

Idexx Laboratories Inc. (IDXX) $493.42 -4.06%
Foot Locker Inc. (FL) $24.95 -2.51%
Whirlpool Corp. (WHR) $92.09 -2.21%
General Electric Co. (GE) $157.01 -2.15%
United Airlines Holdings Inc (UAL) $51.81 -2.12%
Microchip Technology Inc. (MCHP) $92.57 -2.06%
Apache Corp. (APA) $28.73 -2.04%
CenturyLink Inc. (LUMN) $1.21 -2.03%
Bread Financial Holdings, Inc. (BFH) $39.43 -1.94%
Stanley Black & Decker Inc. (SWK) $85.49 -1.83%

Nasdaq 100 - Risers

Broadcom Inc. (AVGO) $1,721.40 15.10%
Tesla Inc (TSLA) $189.37 6.81%
Nvidia Corp. (NVDA) $129.27 3.25%
Baidu Inc. (BIDU) $96.29 2.02%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $397.78 1.96%
eBay Inc. (EBAY) $54.10 1.72%
Skyworks Solutions Inc. (SWKS) $104.22 1.54%
Apple Inc. (AAPL) $216.24 1.49%
Seagate Technology Plc (STX) $104.37 1.48%
Electronic Arts Inc. (EA) $137.40 1.30%

Nasdaq 100 - Fallers

Idexx Laboratories Inc. (IDXX) $493.42 -4.06%
Sirius XM Holdings Inc (SIRI) $2.55 -3.23%
Microchip Technology Inc. (MCHP) $92.57 -2.06%
Intel Corp. (INTC) $30.22 -1.76%
DENTSPLY Sirona Inc. (XRAY) $26.59 -1.70%
Dollar Tree Inc (DLTR) $107.07 -1.65%
Monster Beverage Corp (MNST) $48.98 -1.59%
Walgreens Boots Alliance, Inc. (WBA) $15.30 -1.58%
Amgen Inc. (AMGN) $296.61 -1.48%
Henry Schein Inc. (HSIC) $65.46 -1.43%