July 19, Market Update
Investors received a heavy dose of corporate news, most of which was earnings related. IBM (IBM 149.24, +4.72, +3.3%) and Taiwan Semi (TSM 39.81, +1.40, +3.6%) climbed after reporting their quarterly results, but American Express (AXP 100.17, -2.81, -2.7%), eBay (EBAY 34.11, -3.84, -10.1%), Travelers (TRV 125.18, -4.82, -3.7%), BNY Mellon (BK 52.73, -2.91, -5.2%), Philip Morris (PM 80.90, -1.25, -1.5%), and Alcoa (AA 41.56, -6.40, -13.3%) all sold off.
U.S. Treasuries rallied on Thursday, pushing yields lower across the curve; the benchmark 10-yr yield dropped three basis points to 2.85%.
In Washington, President Trump criticized the Fed in a recorded CNBC interview, saying he's "not thrilled" about interest rate hikes. Mr. Trump's comments were seen as controversial as presidents typically refrain from speaking on monetary policy. The White House quickly issued a response to the criticism, saying the president respects the Fed's independence.
During the same interview, Mr. Trump also commented on the strengthening dollar, saying it puts the U.S. at a disadvantage. The U.S. Dollar Index was up 0.4% at a 12-month high before the president's comments, but gave it all back and then some in a knee-jerk response. The Index was back in the green at Wall Street's closing bell, however, up 0.2% at 95.00.
Graph: Google finance
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