Rising Stocks Post Trump-Powell Fed Tour: Today's Stock Market Update
In the world of finance, several significant developments took place this week. Let's delve into the latest happenings, starting with the economic landscape and moving on to the stock market.
Economic Landscape
The yield on the 30-year Treasury note climbed slightly, with a yield of 4.923%, up from the previous week's 4.999%. Expectations for interest rates remain more tied to traditional factors [1].
Stock Market
The Dow Jones Industrial Average closed at a new all-time high of 44,901, despite a smaller gap from the previous high. The Nasdaq Composite also set a new weekly closing high, rising 0.2% to 21,108. Materials and industrial stocks led the upside, while energy and communication services stocks lagged behind [1].
Notable performers include Nvidia, which notched a new all-time intraday high, and Newegg Commerce (NEGG), which saw a rise in market capitalization to $598.2 million on July 24 [1][4]. UnitedHealth Group was among the top 10 of the 30 Dow Jones stocks [1].
Intel's Second-Quarter Results
Intel reported a loss of 10 cents per share on revenue of $12.9 billion, lower than the FactSet-compiled consensus of a 1 cent per share profit on revenue of $11.97 billion. Intel's CEO Lip-Bu Tan stated that the company is developing its 14A technology in partnership with large external customers [1][5]. Benchmark Research analyst Cody Acree rates INTC stock a Hold but does not offer a 12-month target price [1]. The company forecast third-quarter revenue of $12.6 billion to $13.6 billion, lower than the consensus estimate of $12.66 billion [1].
Federal Reserve and U.S. Economy
President Trump currently lacks straightforward legal authority to fire Federal Reserve Chair Jerome Powell, as the Federal Reserve Act of 1913 restricts the president to removing the chair "for cause," such as serious misconduct. However, a House Republican, Rep. Buddy Carter, has introduced a bill aiming to amend the Federal Reserve Act to allow the president to remove the Fed chair without the "for cause" requirement [1][2][3].
If passed, this legislation could shift the balance of power over U.S. monetary policy, with significant consequences for Federal Reserve independence and economic stability. The Fed’s independence is central to its credibility and ability to manage monetary policy without political interference. Interference risks increasing volatility and uncertainty, potentially harming economic stability [1][2][3].
Notable M&A Discussions
Rumours are circulating about potential mergers in the rail industry, with Union Pacific and Norfolk Southern reportedly in discussions, and talk of a Berkshire Hathaway move for CSX via its BNSF Railway business [1].
Investor Activity
Vladimir Galkin, who made an investable fortune on GameStop and took a big position in JetBlue Airways, is buying NEGG stock [1].
As always, stay tuned for more updates as the financial landscape continues to evolve.
[1] Source: Various financial news outlets [2] Source: The Federal Reserve Act of 1913 [3] Source: Rep. Buddy Carter's bill proposal
The defi market cap saw significant growth this week, with new developments in the decentralized finance sector attracting increased investor interest [6].
The consensus among technology analysts is that the rise of decentralized technologies, such as blockchain and smart contracts, will have profound implications for the trading landscape in the future [7].
