Dow Jones Awaits Fed Powell's Rate Hike As Airlines Tumble; Cathie Wood Turns To Medical Stocks

The Dow Jones is unchanged as the Federal Reserve meeting unfolds, with a rate hike expected on Wednesday. Ark Invest, run by Cathie Wood, is turning to medical stocks.

Dow Jones Awaits Fed Powell's Rate Hike As Airlines Tumble; Cathie Wood Turns To Medical Stocks

As the Fed meeting unfolded, the Dow Jones Industrial Average remained mostly unchanged during early trading on Tuesday. Other indexes rose. The market's leaders in airline stocks have fallen sharply.

S&P 500 gained 0.1% during the first hour of Tuesday's trading, while Nasdaq gained 0.4% by 10:30 a.m. ET.

On Wednesday afternoon, the Fed is expected to increase rates by 25 basis point to a rate target of 5.25% to 5.5%. CME FedWatchTool predicts that a hike is 98.9% likely. Are markets pricing in a hike as the final one? This week, the Personal Income and Outlays are due on Friday.

Technology and materials were the most dominant sectors while industrials lag behind.

The volume on the NYSE was lower, but it was higher on the Nasdaq compared with the same time Monday.

The Russell 2000 small-cap index rose by 0.4%. The Innovator IBD50 (FFTY), with its 1.1% increase, outperformed the market.

Crude oil increased by less than 0.5%, to $78.99 per barrel. The yield of the benchmark 10-year Treasury bill rose by 4 basis points, to 3.89%.

Microsoft (MSFT), the tech giant, rose by over 0.5%. According to IBD MarketSmith's chart analysis, shares have pulled back towards the 10-day line in anticipation of today's earnings.

Verizon (VZ), too, rose after a good quarter. Wireless service revenues increased from the prior year, while free cash flows of $8 billion were higher than $7.2 in the first six months of 2022. The shares have yet to cross the 50-day line.

Apple (AAPL), will report its earnings on August 3.

Stocks moving today

Alaska Air GroupALK's soft outlook has caused airlines stocks to fall. Reports said that the airline expects a revenue increase of between 0% and 3% for the current quarter compared to last year. In heavy volume, the stock fell below its 50 day moving average and all of its gains since its breakout at 51.02% were erased. This triggered sell signals.

United Airlines (UAL), is nearing a purchase point of 54.05. American Airlines (AAL), is currently testing its 50-day flight line.

A few stocks have broken out.

Southern Copper (SCCO), is rising above the buy point of 8205. Logitech's (LOGI), which beat earnings expectations but had a cautious outlook, has seen a strong surge in volume. Zoetis ZTS is breaking out from a cup.

General Electric (GE), after a solid second quarter, jumped. The focus on renewable energy and aerospace is paying off. General Motors (GM), after its earnings report, fell.

Cadence Design Systems (CDNS), a company that has a history of disappointing earnings estimates, fell in the second quarter while NXP Semiconductor grew.

Today, shares of Spotify (SPOT), which have been falling for the past three days after its earnings report, continued to fall on the stock exchange. Early trading has seen shares fall below the 50-day line.

Cathie Wood, the Ark Invest fund manager, has been a constant in and out of four different medical stocks. Ark Genomic Revolution ETF added Moderna and Accolade but sold Exact Sciences and Schrodinger.