The Dow Jones Industrial Average and the S&P 500 looked set to end three consecutive days of gains as investors awaited a monetary-policy update from the Federal Reserve, which could offer fresh clues on the pace of near-term rate increases.
How did the benchmarks perform?
Futures for the Dow YMZ8, -0.18% were down 90 points, or 0.3%, at 26,092, those for the S&P 500 index ESZ8, -0.33% declined by 12.90 points, or 0.5%, at 2,803.30, while Nasdaq-100 NQZ8, -0.50% were retreating 49 points, or 0.7%, at 7,170.
On Wednesday, the Dow DJIA, +2.13% rose 545.25 points, or 2.13%, to 26,180, while the S&P 500 SPX, +2.12% climbed 58.43 points, or 2.12%, to 2,813. The Nasdaq Composite Index COMP, +2.64% jumped 194.79 points, or 2.64%, to 7,570.75. All three indexes ended the day just shy of their intraday highs and booked their best daily gains in weeks.
Wednesday’s performance also marked the Dow and S&P 500’s best day since Oct. 16, while the Nasdaq enjoyed its best session since Oct. 25.
The Dow and S&P 500 have thus far risen on three straight sessions, while the Nasdaq has booked back-to-back advances.
What’s driving the market?
Stocks have been mostly buoyant in the past few days, with midterm election results removing on measure of uncertainty that had weighed on investor sentiment.
Although investors will continue to process the long-term implications of Democrats wresting control of the House and Republicans retaining a majority in the Senate—a widely expected outcome—fresh jitters around Fed policy will likely draw the lion’s share of Wall Street’s focus.
The Fed concludes its two-day policy sitdown at 2 p.m. Eastern Time Thursday, which isn’t likely to yield an interest-rate hike until December, but the central bank will deliver insights about the health of the economy, its expectations for inflation and any lingering effects of a protracted trade spat between the U.S. and China.
Meanwhile, quarterly results continue to roll out, with around 87% of companies in the S&P 500 reporting earnings so far, and posting earnings growth of over 25%, according to FactSet data. Healthy quarterly results have helped to support market optimism along with an economy that has also signaled vigor, but investors fear that steady growth may not last for long, especially as expansion elsewhere in the world has stalled out.
DJIA, +2.13% See: Here’s why stock investors say ‘gridlock is good’ after midterms deliver split Congress
One additional wrinkle on investors’ radar is White House drama, after Attorney General Jeff Sessions resigned Wednesday at the request of President Donald Trump.
Trump had repeatedly laid blame for the existence of special counsel Robert Mueller’s investigation into potential connections between the Trump campaign and Russian interference into the 2016 election on Sessions.
Read: How the midterms made history: Numerous firsts emerge from Election Night results
Which stocks were in focus?
Shares of Tesla Inc. TSLA, +2.08% were in focus after Robyn Denholm as its new chairman, replacing Chief Executive Elon Musk as the head of the board with a relative outsider who will face the difficult task of overseeing the maverick billionaire.
Shares of Arris International PLC ARRS, +11.29% jumped in lightly traded premarket action Thursday after the cable-industry vendor said it was being acquired by CommScope Holding Co. Inc. COMM, -1.09%
Shares of Cardinal Health Inc. CAH, +2.13% rallied 2.9% in premarket trade Thursday after the healthcare services company reported fiscal first-quarter profit and revenue that rose above expectations, boosted by strength in its pharmaceuticals business.
D.R. Horton Inc. DHI, +0.27% reported Thursday fiscal fourth-quarter earnings that matched expectations, but revenue that came up shy, as rising prices and higher interest rates have led to some moderation in demand.
What are the strategist saying?
“The central bank torch is now passed to the FOMC, which decides on policy later today. Expectations are for officials to remain on hold, but we expect them to keep the door wide open for a December hike,” wrote Charalambos Pissouros, senior market analyst at multiasset investment firm JFD Brokers.
What data are ahead
In addition to the Fed policy update, a report on weekly jobless claims for the week ended Nov. 3 are scheduled for 8:30 a.m., with 210,000 claims anticipated from 214,000 in the previous period.
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