Stock Market Mostly Lower Ahead Of Fed Statement; 2 Stocks Plunge More Than 30%

Stock market indexes traded mostly lower ahead of the Federal Reserve’s policy statement this afternoon, while earnings reports sparked some outsize moves.

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The Nasdaq composite fell 0.7% while the S&P 500 was off 0.2%. The Dow Jones Industrial Average rose 0.1%.

Volume was higher on the Nasdaq and lower on the NYSE compared with the same time on Tuesday. It was surprising that Nasdaq volume rose, with many investors holding their breath until the Federal Reserve makes its rate decision and Chairman Jerome Powell provides comments afterward.

The Innovator IBD 50 ETF (FFTY) fell 1.4%. Most of the damage came from Andersons (ANDE), which plummeted 30%, crashing through its 50-day and 200-day moving averages in heavy volume. The grain distribution company posted a 50% decline in earnings late Tuesday. Today, it announced it has sold its railcar repair business to Cathcart Rail. Terms weren’t disclosed.

But construction product maker Atkore (ATKR) regained its 112.34 buy point, which it initially topped on Tuesday following strong quarterly results.

Stock Market Waits For Fed Announcement

The Fed ends its two-day meeting with a statement at 2 p.m. ET today. Policymakers are expected to announce a half-point interest rate increase, bringing the fed funds rate up to a range of 0.75% to 1%.

Less certain is what the Fed will do to reduce its balance sheet. Officials have indicated they’ll trim their portfolio by $95 billion a month, effectively enhancing the Fed’s monetary tightening.

In morning trading, the yield on the 10-year Treasury note rose 2 basis points to 2.98%.

Energy Select Sector SPDR (XLE) rose 1.4% to lead the S&P sector ETFs. The price of U.S. crude oil climbed more than 4% to $106.61. The European Union proposed a ban on Russian oil imports within six months and on refined oil products by year-end.

Advanced Micro Devices (AMD) jumped 4% after the chip designer topped first-quarter estimates and raised guidance for the current quarter and full year. The stock is trying to bottom out after losing nearly half its value from the Nov. 30 peak.

Lumentum, Starbucks, Lyft Big Stock Market Movers

Lumentum (LITE) gapped up to an 8% gain in big volume and now tests resistance at the 200-day moving average. The fiber optics company, which is a main Apple (AAPL) supplier, beat March-quarter expectations. It said it expects demand for its electronic components to outpace supplies.

Starbucks (SBUX) rose more than 6% in heavy volume even though the coffeehouse chain missed March-quarter profit views. The company pledged to invest more than $1 billion in its business, and suspended guidance for the remainder of the fiscal year.

Livent (LTHM) soared nearly 24%, climbing back above its 50-day and 200-day moving averages in huge volume. In the first of several earnings reports for the lithium industry, Livent beat expectations and gave a bullish full-year forecast.

Lyft (LYFT) plummeted more than 30% to the lowest level since April 2020. The ride-share company topped revenue estimates but posted a larger loss than projected. The company expects second-quarter revenue between $950 million and $1 billion, below a consensus estimate for $1.02 billion.

Mixed Economic News For Stock Market

In economic news, the ADP estimate of April job growth came in at 247,000. That’s well below forecasts for nearly 400,000, according to Econoday. ADP tallied 479,000 new jobs in March. The report is a precursor to Friday’s Labor Department report on payrolls. Nonfarm payrolls are expected to grow 400,000.

The final S&P Global service sector PMI Business Activity Index fell to 55.6 in April from 58.0 in March, although it was revised up from the initial estimate of 54.7. Higher wage, transportation and material costs drove up input prices.

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