Stock Market Sheds Points Today Due to IBM's Downturn
The S&P 500 made a new closing high on Thursday, inching up 0.1% to 6,363, while the Dow Jones Industrial Average closed down 0.7% at 44,693. The Nasdaq Composite also saw a positive trend, increasing 0.2% to 21,058, marking a new closing high as well.
The U.S. equity indexes closed mixed on Thursday, with some stocks experiencing significant movements. IBM, for instance, saw a 7.6% decrease, while Chevron rose by 1.8% due to the administration's decision to allow the oil and gas exploration and production company to resume drilling operations in Venezuela.
IBM's second-quarter earnings were $2.80 per share on revenue of $17.0 billion, exceeding estimates. Stifel analyst David Grossman reiterated his Buy rating and his $310 12-month target price for IBM, but the full-year guidance was solidified, which may have contributed to the stock's decline.
Tesla, on the other hand, experienced an 8.2% decrease, while Alphabet had a 1.0% increase. Opendoor Technologies saw a 5.7% increase, and retail interest was particularly on display in the options market for Krispy Kreme and Kohl's.
The yield on the 2-year Treasury note increased to 3.912%, and the yield on the 10-year U.S. Treasury note climbed to 4.402%. The 30-year yield inched back to 4.948% from its previous value.
The Federal Reserve's next meeting is scheduled for July 29 and will conclude on July 30. According to reports, the expected outcome of this meeting is to keep the federal funds rate unchanged at 4.25-4.50%, continuing a "pause" for the fifth consecutive meeting. The Fed indicated the economy showed moderated growth in the first half of 2025, a solid labor market, and somewhat elevated inflation.
The real GDP growth forecast for 2025 has been downgraded to 1.4%, the unemployment rate slightly increased to 4.5%, and core PCE inflation is projected at 3.1%. The federal funds rate is expected to be around 3.9% by the end of 2025.
For updates on the Federal Reserve meetings, you can follow the official Federal Reserve website's Monetary Policy section, economic analysis sites such as TD Economics and EY Insights, and major financial news outlets like AP, Reuters, and Bloomberg. These are the authoritative and timely places to track policy changes, the Fed’s economic outlook, and statements from Fed Chair Powell and the FOMC.
[1] Federal Reserve Statement, July 29-30, 2025. [2] AP News, July 29, 2025. [3] Reuters, July 29, 2025. [4] Bloomberg, July 29, 2025. [5] TD Economics, July 29, 2025. [6] EY Insights, July 29, 2025.
- Investors may have been influenced by the mixed performance of the S&P 500 and other equity indexes, as well as the consensus among analysts and the Federal Reserve's outlook, in their trading decisions in the stock-market on Thursday.
- In light of the Federal Reserve's expected outcome of the upcoming meeting, investors may find it crucial to consider the impact on financial interests, such as interest rates and inflation, when making decisions about investing in stocks like IBM, Tesla, or other companies.
