U.S. stock indexes were mixed Wednesday, as a convergence of news and developments comforted the bulls more than the bears.
The Nasdaq popped ahead 0.6%, towed partly by Apple's (AAPL) 7% gain. Apple accounts for 5.9% of the Nasdaq's weighting. Meanwhile, the S&P 500 slipped 0.1%, while the Dow Jones industrial average was virtually flat.
Volume in the stock market today was higher on both major exchanges.
Four factors conspired to set the day's tone. First, there was Apple's better-than-expected quarterly results. The stock gapped up, retaking its 50-day line and 200-day line. The 200-day line, though, could become a battleground in the days ahead. Although Apple isn't the stock-market star it once was, the widely held stock can still set a tone for the stock market.
A second factor was the Federal Reserve. The Fed concluded its two-day meeting, keeping rates at 0.25% to 0.5%. However, the Fed statement announced that "Near-term risks to the economic outlook have diminished." This could mean a hike later in the year. Among the Fed members, there was only one dissenter. Esther George favored raising rates to 0.5% to 0.75%.
A third influence on stocks was in the bears' favor. Durable goods orders for June and pending home sales for June both missed the Street's consensus estimate. Pending home sales matched the lowest estimate in the range. Durable goods were below the most pessimistic estimate, according to Econoday.
The final card dealt Wednesday was a 2% drop to just over $42 a barrel in West Texas intermediate crude oil, according to preliminary data. U.S. oil inventories increased more than expected.
After the close, Facebook (FB) is expected to report Q2 results. The Street expected earnings to rise 64% to 82 cents a share. Revenue was pegged at $6.02 billion, an almost 49% increase.
