Wall Street Recap
Stocks fell during afternoon trading today after the Federal Reserve raised interest rates by 25 basis points. The Nasdaq fell -0.21% to 7,990.37, the S&P 500 dropped-0.33% to 2905.97, and the Dow declined -0.40% to 26,385.28. The Fed announced it will be upping the fed funds target rate by 0.25 percent to a range of 2.0-2.25 percent. This is the third time the Federal Reserve has boosted interest rates in 2018.
“Information received since the Federal Open Market Committee met in August indicates that the labor market has continued to strengthen and that economic activity has been rising at a strong rate,” the Fed Reserve said in its statement today.
Interest rates are at the highest level over the past decade. The markets are expecting to deliver one more interest rate hike this year in 2018. The U.S economy grew at a 4 percent rate in the most recent quarter and the unemployment rate is at lowest levels in 18 years.
Notable Stocks
Nike Inc. ($NKE) reported its Q1 earnings report after the bell yesterday. The stock fell lower -1.29% to $83.70 today.
International Business Machine Corporation ($IBM) rose +1.81% to $151.61 after UBS lifted its rating on the company to “buy” and boosted its price target, citing solid prospects for its services and artificial intelligence businesses.UBS’s John Roy upgraded IBM from Neutral to Buy with a 12-month price target lifted from $160 to $180.
Papa Johns International Inc. ($PZZA) rose higher +8.50% after the company reached out to some private equity firms in the recent weeks to discuss selling itself to other companies.