What's moving markets today: May 1, 2019

By CNN Business

Updated 6:21 p.m. ET, May 1, 2019
19 Posts
Sort byDropdown arrow
6:19 p.m. ET, May 1, 2019

What's next for investors on Thursday?

From CNN Business' Anneken Tappe

Wednesday's trading day is over and interest rates have remained unchanged. Here's what investors will look at tomorrow:

  • European manufacturing PMIs are due before US investors wake up. They will be closely watched after Tuesday's GDP data was better than expected
  • The Bank of England gives its monetary policy update at 7 am ET. It might provide an update on how it views the Brexit risk now that the deadline has been delayed
  • In the US, weekly jobless claims will come out at 8:30 am ET, and motor vehicle sales will be reported throughout the day
  • Earnings will include Cigna (CI), Dunkin' (DNKN), Under Armour (UA) and Weight Watchers (WW)

6:21 p.m. ET, May 1, 2019

Stocks finish lower as investors digest Fed comments

From CNN Business' Anneken Tappe

Stocks ended lower on Wednesday following the Federal Reserve’s monetary policy update. The Fed didn’t have many surprises up its sleeve, leaving interest rates unchanged and reiterating its patient approach to monetary policy.

  • The Dow closed 0.6%, or 163 points, lower.
  • The S&P 500, which touched a record intraday high earlier, finished 0.8% lower.
  • The Nasdaq Composite closed down 0.6%.

Molson Coors (TAP) was the worst performer in the S&P, falling 7.5%. Clorox (CLX) did similarly poorly, slipping 7.2%.

Home Depot (HD) and Nike (NKE) were doing worst in the Dow, dropping 2.4% and 2.2%, respectively. Apple (AAPL) was the bright spot in the index, climbing 4.9%.

3:48 p.m. ET, May 1, 2019

Stocks at session lows

From CNN Business' Anneken Tappe

Stocks are near their session lows after Federal Reserve Chairman Jerome Powell's press conference.

The Dow, S&P 500 and Nasdaq Composite are all staunchly in the red with less than 30 minutes to go until the close.

Powell stressed the central bank's independence, somewhat unsurprisingly, in response to questions about President Donald Trump's call for a 1% rate cut to boost the economy.

Powell also said that the Fed remained committed to its 2% inflation target and that the current lower inflation might be transitory.

Markets continue to expect the next move in the main policy rate to be one to the downside, but the reiterated patient stance of the Fed may leave both the President and market participants waiting longer for a rate cut," said  Charlie Ripley, Senior Investment Strategist for Allianz Investment Management

In other assets, the dollar turned positive and climbed 0.3% to 97.718 and the 10-year US Treasury yield was little changed at 2.5125%.

2:35 p.m. ET, May 1, 2019

Federal Reserve leaves interest rates unchanged despite Trump's rate cut demands

From CNN Business' Donna Borak

The Federal Reserve on Wednesday left its key benchmark rate unchanged despite renewed calls by President Donald Trump to cut interest rates.

Policymakers led by Fed Chairman Jerome Powell unanimously agreed to leave rates alone, sticking with the wait-and-see approach outlined earlier this year amid uncertainty about where the US economy is headed.

Fears of an economic slowdown have subsided in the wake of positive news from China, and trade tensions between Washington and Beijing appear to be easing as negotiators work toward a deal.

Read the whole story about the Federal Reserve's policy update here.

2:24 p.m. ET, May 1, 2019

Stocks add to gains after Fed notes strong US growth

From CNN Business' Anneken Tappe

Stocks added to their gains after the Federal Reserve released its monetary policy update.

The central bank unanimously agreed to leave interest rates unchanged, sticking to its policy of being patient. It commented on the solid US economic growth and strong labor market in its statement, and acknowledged that inflation has declined has is running below the target of 2%.

  • The Dow was last up 0.2%, or 61 points, while the S&P 500 was up 0.2%. The Nasdaq Composite was up 0.6%.
  • The US dollar, measured by the ICE US Dollar Index, held onto its losses and was last down 0.2%.
  • The 10-year US Treasury yield was slightly lower at 2.4622%

Now investors will watch the press conference with Fed Chairman Jerome Powell at 2:30 p.m. ET.

1:04 p.m. ET, May 1, 2019

Stocks are mixed at midday

From CNN Business' Anneken Tappe

Around the halfway mark of the trading day, stocks have given back their previous gains.

The S&P 500, which earlier in the session hit a new intraday record high, was even trading in the red.

Apple (AAPL) continues to be one of the most heavily traded stocks, according to Refinitiv, gaining more than 6% after yesterday's earnings.

In the S&P, cruise operator Royal Caribbean (RCL) and defense contractor Harris Corp (HRS) are doing the best, both climbing more than 7%.

11:57 a.m. ET, May 1, 2019

Hulu's subscriber base grows, but it's still half the size of Netflix

From CNN Business' Jordan Valinsky

Aidy Bryant in the Hulu original series "Shrill."
Aidy Bryant in the Hulu original series "Shrill."

Hulu revealed that it now has 28 million subscribers, 3 million more than it had at the end of 2018.

But the streaming service still lags far behind Netflix (NFLX), which has 60 million subscribers in the United States and 150 million globally. Hulu is only available in the United States.

Disney (DIS) became the majority stakeholder in Hulu after it closed a deal to buy most of Fox's assets earlier this year. NBCUniversal is the only other owner with roughly 30%. 

AT&T (T), which owns CNN's parent company WarnerMedia, announced last month that it is selling its minority stake in Hulu back to the streaming video service.

📺Read more about the shows Hulu unveiled right here.

11:56 a.m. ET, May 1, 2019

The dollar struggles ahead of the Fed interest rate update

From CNN Business' Anneken Tappe

With a little over two hours until the Federal Reserve's monetary policy and interest rate update, the US dollar doesn't look so hot.

The ICE US dollar Index, which measures the buck against six rival currencies, was last down 0.2% at 97.281.

While the Fed is expected to keep interest rates steady today, the market is beginning to price in a 25 basis point rate cut later this year, as evidence by CME Fed funds futures. If the central bank were to lower rates again, it would likely weigh on the dollar, which enjoyed a tailwind last year from four interest rate increases.

Fed officials have pushed back against rate cut expectations several times this year. As such, there is a risk that we see some more push back today, which would help the dollar regain some traction," said Win Thin, global head of currency strategy at Brown Brothers Harriman.

So far, Fed Chairman Jerome Powell has preached patience this year, and has not given any firm indication that the next move of interest rates would necessarily be lower.

Yesterday, President Donald Trump called for a 1%, or 100 basis point, rate cut to boost the US economy.

10:31 a.m. ET, May 1, 2019

The S&P 500 has set a new intraday record

From CNN Business' Anneken Tappe

About an hour into trading, stocks are holding in the green, despite some not-so-great economic data.

The S&P 500 has already set a new intraday record high. It's that kind of day.

The ISM manufacturing index for April came in below expectations at 52.2, and construction spending for March fell 0.9%, more than forecast.

The strongest gainers in the S&P are Hilton (HLT) and defense contractor Harris Corp (HRS), both up more than 6%.

Apple (AAPL) is the strongest Dow component, having climbed 6% after last night's earnings.