US Stock Market Overview – Stocks Slide Following Fed Minutes

US Stocks moved lower on Wednesday and accelerated down into the close following the Fed meeting minutes. Although the Fed was dovish, it appeared to be a reason for traders to take profits. Apple hit the 2-trillion market cap level earlier today, the first company in history to hit this mark. Nearly all sectors in the S&P 500 index were lower, led down by real estate. Communications bucked the trend. The VIX volatility index moved higher for the first time this week, after closing below 22 on Tuesday. Lowes and Target report earnings before the opening bell, which were better than expected.

Fed Minutes are Dovish

The Federal Open Market Committee expressed concern at their last meeting over the future of the economy. If the virus remains out of control, the economic output could contract. Officials at the meeting agreed that the ongoing public health crisis would weigh heavily on economic activity, employment, and inflation. Comments indicated that while members are in favor of adding clarity to their expectations for when they will hike rates again, they appeared to reject the likelihood of using bond purchases to control yields on government bonds.

Lowes Reports Better than Expected Q2 Financial Results

Lowes reported Q2 earnings were much better than expected. Consumers used their stimulus checks to purchase items to improve their homes. Lowest reported robust Q2 results as consumers focused on home improvements pushing same-store sales up 35%. The company reported online sales surged 135% from levels recorded during the same period in 2019. Earnings came in at $3.75 per share, up nearly 75%, compared to expectations that they would rise to $2.93 per share. Revenues rose a robust 30% to 27.3 billion beating estimates of $24.2 billion.