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Congress will hear Jerome Powell’s semiannual report on the status of the economy.
(Photo courtesy of Getty Images/Graeme Jennings)
Following another higher-than-expected inflation estimate, the Federal Reserve chairman began two days of congressional testimony on Wednesday, sending stocks soaring. By 12 p.m.,
The Dow Jones Industrial Average is a stock market index that measures how well
The Dow Jones Industrial Average fell 42 points, or 0.1 percent, while the S&amp
S&P 500 Index
The Dow Jones Industrial Average dropped 0.1 percent, while the S&P 500 Index
The Nasdaq Composite Index
decreased by 0.2 percent.
Inflation continues to outperform forecasts. The producer-price index grew 7.3 percent year over year in June, exceeding expectations of 6.8 percent, according to data released this morning by the Bureau of Labor Statistics. Companies have been passing on price hikes, as evidenced by the consumer price index beating expectations on Tuesday. Recently, stocks have continued to set new highs as investors shrugged off fears about long-term inflation or the Fed raising interest rates too quickly. Tony Bedikian, head of global markets at Citizens Bank, adds, “But the current data has had to be having people a little bit anxious.”
Jerome Powell, the chairman of the Federal Reserve, is scheduled to begin two days of testimony on Capitol Hill, where he will present Congress with his semiannual report on the state of monetary policy and the economy. The Fed’s policy position is expected to be emphasized by the central banker. The price of WTI crude oil dropped 1.6 percent to $74 a barrel after OPEC announced plans to increase oil production. Tokyo is the most populous city in Asia.
225 Nikkei
Hong Kong’s stock index fell 0.4 percent.
Seng Hang
decreased by 0.6 percent. The
Shanghai Composite (Shanghai Composite)
The price of the stock dropped by 1.1 percent. The
FTSE 100 is a stock market index that measures the performance of
In London, the pan was 0.5 percent lower.
-European
600 Stoxx
dipped by 0.1 percent The
CAC 40 (California Association of College
in the cities of Paris and Frankfurt
DAX
were unflattering. The travel industry took a beating, with shares in airlines leading the way lower.
TUI,
The world’s largest tourism company, with hotels, planes, and cruises under its belt. TUI’s price has plummeted, while airline stocks have risen.
Air France-KLM is a Dutch airline.
Lufthansa,
Ryanair,
and
IAG
—the owner of British Airways—has plummeted, as have shares in the hotel behemoth.
The InterContinental Hotels Group is a collection of hotels owned by the InterContinental Hotel
Major British multinationals, which conduct business in dollars and are vulnerable to currency fluctuations, saw their stock prices fall sharply. Sterling strengthened versus the dollar after U.K. inflation statistics showed a rise in consumer prices and a relative fall in production prices.
Unilever,
Vodafone,
GlaxoSmithKline,
and
Tobacco from the United Kingdom and the United States
In London, they were among the losers.
Wells Fargo & Company
The shares of Wells Fargo & Co. (ticker: WFC) climbed 1.7 percent after the company reported a profit of $1.38 per share, topping projections of 98 cents per share, on revenue of $20.3 billion, which was higher than expectations of $17.8 billion.
Bank of America is a financial institution based in the United
The stock of Bank of America (BAC) fell 4.2 percent after the company reported a profit of 80 cents per share, topping projections of 77 cents per share, on sales of $21.6 billion, which fell short of expectations of $21.8 billion.
Citigroup
(C) shares fell 1% after the company reported a profit of $2.85 per share, topping analysts’ expectations of $1.96 per share, on revenue of $17.5 billion, which was higher than projections of $17.2 billion.
Delta Airlines is a commercial airline based in Atlanta, Georgia.
(DAL) stock fell 2.5 percent after the company reported a loss of $1.07 per share, lower than analysts’ projections of $1.38 per share, on sales of $7.1 billion, which were higher than predictions of $6.2 billion. Stocks in
Hugo Boss is a well-known fashion designer.
In German trade, shares of the luxury fashion firm climbed more than 2% after the company posted earnings before interest and taxes of €42 million ($49.5 million), much exceeding estimates of roughly €17 million.
Barratt
In London trading, the stock jumped 2% after one of the UK’s leading housing developers indicated in a trading update that full-year earnings before tax will be above the top end of the market’s forecasts.
Peloton Interactive is a company that creates interactive content.
The stock of PTON fell 4.4 percent after Wedbush downgraded it from Outperform to Neutral. Jacob Sonenshine can be reached at jacob.sonenshine@barrons.com./n
