Tuesday, 18 June 2024
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Stock Market

Before the Fed, stocks pause while earnings are mixed: markets wrap

  • Traders took a cautious approach ahead of the Federal Reserve’s policy announcement.
  • Releasing their earnings are major retailers such as Amazon.com Inc., Coca-Cola Co., and McDonald’s Corp.
  • Due to model revisions and a slowdown in the market for EVs, Mercedes-Benz Group AG’s earnings fell 34% in the first quarter.

Amid a barrage of corporate news and earnings, stocks halted their gains, and traders took a cautious approach ahead of the Federal Reserve’s policy announcement on Wednesday.

Better-than-expected economic data from France and Spain was countered by a retreat by automakers Volkswagen AG, Mercedes-Benz Group AG, and Stellantis NV, which resulted in minor changes on Europe’s benchmark Stoxx 600.

Markets wrap

Following strong profits and the unexpected resignation of Group Chief Executive Officer Noel Quinn, HSBC Holdings Plc surged by more than 2%. Releasing their earnings are major retailers such as Amazon.com Inc., Coca-Cola Co., and McDonald’s Corp.

More than 80% of corporations are exceeding expectations, according to preliminary findings from the US reporting season, allaying concerns that interest rates will continue to rise.

In the face of strong inflation numbers and indications of the US economy’s resilience, Fed Chair Jerome Powell is unlikely to allay these worries on Wednesday.

The business highlights include Volkswagen AG’s declining first-quarter earnings due to declining auto sales and profitability being negatively impacted by the expense of introducing new models. Due to model revisions and a slowdown in the market for electric vehicles, Mercedes-Benz Group AG’s earnings fell 34% in the first quarter.

According to Bloomberg Economics, Elon Musk intends to eliminate hundreds more positions at Tesla Inc. in addition to the departure of two more senior executives. To reduce costs, Deutsche Lufthansa AG said it will freeze certain projects and reevaluate hiring in specific departments at its namesake airline.

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