Market News & Analysis
Equity Handover: Stocks Drop as Powell, Bullard Dash Doves’ Hopes
Matt Weller, CFA, CMT June 26, 2019 6:26 AM
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- US indices closed lower on the day after Fed voter Bullard (dove) downplayed a 50bps rate hike next month. Fed Chairman Powell reiterated the less-dovish sentiment, noting that the central bank should not bow to “political interests.”
- Fading hopes of progress at this weekend’s G20 meeting also served as a headwind for global stocks - see our full preview of the event.
- Materials (XLB) were the strongest sector for the second straight day, marking the only major sector to eke out a gain on the day; Technology (XLK) and Communication Services (XLC) brought up the rear.
- Stocks on the move:
- Allergan (AGN) gained 25% after Abbvie (ABBV) agreed to buy the company for $63B. ABBV shares fell 16% on the day.
- FedEx (FDX, -3%) is scheduled to report earnings shortly after we go to press.
- Homebuilder Lennar (LEN) feel 6% today despite reporting better-than-expected Q2 earnings and revenue.
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