Wall Street opens higher before the Fed, Microsoft and Alphabet reassure, Companies news

July 27 (Reuters) – The New York Stock Exchange opened higher on Wednesday after results beat expectations from Microsoft and Alphabet, as investors’ attention turned to announcements from the Federal Reserve (Fed) .

In early trade, the Dow Jones Index gained 125.93 points, or 0.4%, to 31,887.47 points and the broader Standard & Poor’s 500 rose 1.128524% to 3,965.3 points. .

The Nasdaq Composite gained 2.13%, or 245.862 points, to 11,808.437.

Markets expect the Fed to announce another 75 basis point rate hike at 18:00 GMT. The president of the institution, Jerome Powell, will speak thirty minutes later.

“Corporate earnings could take a back seat tonight if the Fed surprises by being tougher than the market expects,” Saxo Bank’s Peter Garnry warned in a note.

The results from the tech giants have in the immediate term somewhat assuaged investors’ worries about growth.

Microsoft climbed 5% after announcing plans for double-digit revenue growth for the current fiscal year, while Alphabet rose 5.1% after the publication of above-expected advertising revenue for its advertising engine. Google search.

In their wake, growth stocks (Amazon, Meta, Apple) rose between 1.8% and 2.8% at the start of the session, before the highly anticipated publication of their results this week.

Among other featured stocks, Boeing was up 2.51% as the US automaker maintained its free cash flow generation target this year.

Paypal gained 5.16% after news reports that the fund Elliott Investment Management is in the process of taking a stake in the payments group.

T-Mobile US gained 3.01%, buoyed by rising expectations for growth in its number of subscribers for the second time this year and quarterly profits above expectations. (Written by Olivier Cherfan and Valentine Baldassari, edited by Jean-St├ęphane Brosse)

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