U.S. stock markets were little changed on Wednesday morning as COVID-19 stimulus talks progressed and investors waited for the Federal Reserve’s decision on interest rates.
|I: DJI||MEDIUM DOW JONES||30198.45||-0,86||-0,00%|
|SP500||S&P 500||3701,27||+6,65||+ 0,18%|
|I: COMP||INDEX COMPOSITE NASDAQ||12621.01922||+25,96||+ 0,21%|
The Dow Jones Industrial Average and S&P 500 were down around 0.1% coin in the first few minutes of trading. The Nasdaq Composite briefly hit a new high before falling.
Negotiations between Democrats and Republicans over coronavirus relief are getting closer and closer to a deal, Senate Majority Leader Mitch McConnell of Kentucky said on Tuesday regarding a bipartisan $ 908 billion package split into two parts – a $ 748 billion bill that includes additional funding for the paycheck protection program and unemployment benefits, as well as a $ 160 billion bill that provides funding to the governments of the State and local and corporate liability protections.
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Economic data released Wednesday morning showed retail sales fell 1.1% month over month in November, worse than the 0.3% drop expected by analysts polled by Refinitiv.
|WMT||WALMART INC.||146,89||+1,32||+ 0,91%|
|TGT||TARGET CORP.||172,67||+1,22||+ 0,71%|
|AMZN||AMAZON.COM INC.||3 203,31||+38,19||+ 1,21%|
Regarding inventory, Southwest Airlines Co. said on Wednesday that it plans to take delivery of 35 Boeing 737 Max aircraft by the end of 2021 and that the aircraft is expected to join its fleet in March. The company said the increase in cancellations in December would result in cash consumption of about $ 12 million per day in the fourth quarter, from $ 10 million to $ 11 million.
|LUV||SOUTHWEST AIRLINES CO.||45,41||-1,00||-2,17%|
As part of mergers and acquisitions, Canadian cannabis producers Aphria Inc. and Tilray Inc. have agreed to merge their businesses, creating a company valued at C $ 5 billion ($ 3.9 billion). The new company, which will trade under the ticker symbol Tilray, will own 62% of Aphria’s shareholders, who pay a 23% premium for Tilray shares.
|TLRY||TILRAY INC||9,54||+1,67||+ 21,22%|
Elsewhere, gunmaker American Outdoor Brands said its quarterly sales jumped 66% from a year ago, as demand for guns increased as more people spent time enjoying activities. outdoors, like hunting, amid the pandemic.
|AUGUST||AMERICAN OUTDOOR BRANDS INC.||18,19||+2,35||+ 14,84%|
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Twitter Inc. was upgraded to “overweight” at JP Morgan, which raised its price target to $ 65 per share from $ 52, citing strong sustained growth in US internet companies. Other companies benefiting from target price increases from JP Morgan include Alphabet Inc., Snap Inc. and Uber Technologies Inc.
|TWTR||TWITTER INC.||54,67||+1,82||+ 3,44%|
Shares of Chinese video streaming company iQiyi Inc. were significantly lower after the company announced a secondary offering of convertible notes and US deposit stocks.
The Federal Reserve’s final interest rate meeting this year will end at 2 p.m. ET. Economists are mixed on whether the central bank, which is expected to offer a bullish outlook on the economy, will change its bond buying program. Fed Chairman Jerome Powell’s press conference will begin at 2:30 p.m. ET.
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On the commodities front, West Texas Intermediate crude slipped 16 cents to $ 47.46 per barrel while gold edged up $ 6.60 to $ 1,861.90 per ounce.
European markets were mixed with the German DAX 30 rising 1.25% and the UK FTSE 100 rising 0.53% while the CAC 40 in France fell 0.13%.
In Asia, Hong Kong’s Hang Seng index was up 0.97%, Japan’s Nikkei 225 was up 0.26%, and China’s Shanghai Composite was down 0.01%.