US Stock Indexes Ride Apple Beat Higher; Fed Helps Extend Rally

The major U.S. equity indexes are trading higher shortly after the mid-session, led by shares of Apple which hit an all-time high. The technology company is coming off a huge earnings beat announced after the close on Tuesday. The move was fueled by strength in the iPhone, which drove sales to record levels.

General Electric Impresses

General Electric shares rose 7% after the embattled industrial conglomerate reported fourth-quarter results that were stronger overall than analysts expected. Additionally, while GE’s forecast for 2020 earnings was below what Wall Street expected, its guidance for the closely-watched metric of industrial free cash flow was higher than anticipated.

Coronavirus Weighs on Starbuck

Shares of Starbucks slid 2.5% as investors focused on its warning that the Wuhan coronavirus outbreak could ‘materially affect” its fiscal 2020 results. Starbucks has closed more than half of its Chinese locations as the country battles the spread of the virus. Executives said the Chinese locations that are still open have seen sales slow down, compared to historical numbers.

Dow Best Performer Among Blue Chips

Shares of Dow are up roughly 5% after the company beat earnings expectations on the top and bottom lines. The stock is the best performer in the Dow Jones Industrial Average, which is up more than 100 points. The chemical and materials company posted an adjusted earnings per share of 78 cents for its fourth quarter and $10.204 billion in revenue. Analysts expected 74 cents in earnings per share and $10.071 billion in revenue, according to Refinitiv. Revenue declined 15% compared with the same quarter the previous year, but the company said its cash provided by operating activities rose by $1.37 billion.

A Third of the S&P 500 is Still in Correction Territory

According to CNBC, the major averages may be vying for their second straight daily gain, but the picture underneath the surface is still worrisome. At 33% of all &P 500 attacks are in correction, meaning they are down at least 10% from their 52-week highs. Las Vegas Sands, Deere, Delta and Netflix are among those stocks. Some are in worse shape. Twitter, Gap, Macy’s and American Airlines are in a bear market, or down at least 20% from their 52-week highs.

Stocks are Higher after Fed Decision

The major U.S. stock indexes added to their earlier gains after the U.S. Federal Reserve kept interest rates unchanged, a decision that was widely anticipated. The Blue Chip Dow Jones Industrial Average was up more than 150 points, while the benchmark S&P 500 Index and the technology-based NASDAQ each traded about 0.4% better.

The Fed also said the U.S. economy is growing at a “moderate rate.” However, the Fed noted consumer spending was “moderate,” a slight downgrade from policymakers’ view last month. Fed Chairman Jerome Powell is scheduled to deliver a news conference at 19:30 GMT.