Global Stocks Rally Ahead Fed Decision, Tech Up on Pre-Market

As the market waited for more earnings report for the second quarter, global stocks remained moderately higher supported by the forecast that the Federal Reserve may leave the interest rate unchanged after its policy meeting later today.

Nasdaq 100 futures went up 0.63 percent, while the Dow Jones futures increased 0.18 percent. The S&P 500 advanced 0.17 percent after trading bullish for the past few sessions.

The Federal Reserve is expected to keep its rates as the U.S. economy still couldn’t find a decent recovery from its stability. After delaying the rate hike last month, the central bank will likely push the plan in September or before the end of the year.

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Aside from the Fed meeting, the market closely watched the reports of the Commerce Department and the National Association of Realtors regarding the durable good orders and pending home sales data respectively.

After the downbeat report of the American Petroleum Institute on the crude oil stocks, the government Energy Information Administration will release its weekly  crude stockpile and production as well. During the previous sessions, oil futures extended losses as the market remained to be severely over supplied.

Tech Stocks

Apple advanced 7.48 percent in the pre-market session, but it stayed flat after the market closed. Apple recently reported a decline of its iPhone sales on its third quarter earnings report. The tech juggernaut disclosed a revenue of $42.36 billion and an earnings per share of $1.42, beating the analysts’ expectations. The stock remained to be the biggest company by market capitalization globally.

Meanwhile, tech experts remained optimistic in the earnings report of Facebook as the company sounded successful on its venture on WhatsApp and Messenger. Facebook has indicated recently from the previous reports the development of its Facebook Live, encouraging more users for the application.

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Facebook has been changing hands in light volume, climbing 0.99 percent in the pre-market, but stayed flat to $121.22 with a market capitalization of 345.56 billion. The stock has a price earnings ratio of 74.27. Analysts forecasted an increase of 62 percent on its earnings per share in the second quarter and the revenue to jump by 50 percent or $6 billion.

Auto Industry

After finally closing the deal with Malaysia Airlines, Boeing opened 2.19 percent higher before it ended flat to $134.85. The American aircraft manufacturer had a market capitalization of 87.14 billion, with a dividend yield of 3.23 percent.

Market analysts expected the stock to have an adjusted earnings per share of 37 percent to $2.22. However, the revenue was forecasted to plummet by 2 percent or $24.04. Currently, Boeing Co has a price earnings ratio of 18.21.

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Aside from 50 MAX 737 orders from the Malaysia Airlines, the aircraft company was reported of taking $393 million after tax-charge from its KC-46 tanker program intended for the Airforce. Its Commercial sector is also having an after charge of  approximately $814 million on its 747 program and $847 million from its 787 Dreamliner.

Consumer Products

In other news, Pepsi Corporation surpassed the analysts’ expectations and reported quarterly earnings based on the forecasts of the market experts.

Pepsi’s major competitor, Coca-Cola is expected to have $11.64 billion revenue, down by 4.2 percent and an earnings per share dropping for almost 8 percent. Coca Cola lost 2.47 percent to $42.74 in the session earlier with a market capitalization of 186.49 billion. The stock had a dividend yield of 3.20 percent and a price earnings ratio of 26.45.

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Author: exocapitalfinancepro

As the dissemination of online financial news gets easier through the evolution of different media platforms, Exo Capital Finance Pro brings the most comprehensive up-to-date financial information right in front of your eyes. In line with the mission of Exo Capital Market, this news blog aims to provide the financial ideas needed by the clients through the market news and analysis delivered regularly. Exo Capital Mission Grounded on financial stability and service efficiency, Exo Capital Markets Ltd. hopes to stimulate and drive innovation in the world by catering the needs of its clients. Committed to guiding its clients to achieve their maximum potentials, the company seeks to lead and bring growth into the market through the high quality services it provides. Exo Capital Vision Exo Capital Markets Ltd. strives to become the leading financial services firm by offering its clients with the most modern solutions in the industry. The company wants to create an avenue of knowledgeable and competent traders by assuring accountability and honesty in delivering the services we provide for the community.

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