From the top:
- Dow's exuberant performance
- S&P 500 and Nasdaq struggle to reach positive territory
- Biotech Illumina revenue beats expectation
- Fed puts a date to trim balance sheet
The Dow broke the 22,000 resistance level from open in Wednesday trading helped by Apple's share price rally.
The Dow closed up +0.24% at 22,016 up and over the market benchmark whether or not breaking this barrier is predictive remains to be seen. Market movers Apple (+4.73%), McDonalds (+1.66%) and United Technologies (+1.24%) powered the Dow Jones Industrial Average.
Meanwhile the S&P 500 and Nasdaq struggled to remain in positive territory with the price weighted index flat at 1.22 points or +0.05% and Nasdaq virtually unchanged down -0.29 points. Energy companies put pressure on the S&P 500. Oil exploring company, Range Resources plunge -11.82% and Pioneer Natural Resources dropped -10.77%. Healthcare company DaVita fell -8.84%.
- Dow 22,016 +0.24%
- S&P 500 2,477 +0.05%
- Nasdaq 6,362 0%
- Russell 2000 1,412 -1.08%
- NYSE Composite 11,979 -0.17%
- Gold 1,274 +0.11%
- Oil WTI $52 +1.10%
- 10-Year Treasury Yield 2.27% +0.01%
Illumina shines on better-than-expected earnings
Biotech firm, Illumina share price spiked +14.83% after revealing second quarter results that beat analysts' expectations. Revenue rose $662m, a 10% increase compared to the same period in 2016.
News since its last earnings included receiving FDA approval for a companion diagnostic kit that helps identify colorectal cancer patients eligible for Amgen's Vectibix(R).
The company also announced that Genomics England will be using Illumina's variant interpretation and reporting software in the characterisation of tumor and matched normal samples as part of the NHS 100,000 Genomes Project.
Gross margin in the second quarter of 2017 was 65.5% compared to 70.6% in the prior year period.Net income rose $128m or 87 cents a share compared to $120m or 82 cents a share for second quarter in 2016. Analysts polled by FactSet projected EPS of 69 cents on revenue of $642m.
Francis deSouza, President and CEO said, "Interest in the NovaSeq platform exceeded our expectations during the quarter. As a result, we have updated our 2017 revenue growth projections to reflect the market demand for NovaSeq and our positive outlook for the rest of the business."
Federal Reserve puts a date to trim balance sheet
San Francisco's Federal Reserve President John Williams in a speech in Las Vegas on Wednesday gave the first indication of a time for the Fed to begin trimming the near $4.5trn balance sheet, Reuters reported.
The Federal Reserve in its rate-setting meeting in July only hinted at a timing of "relatively soon" and before the end of the year to begin unwinding its position.
Williams told reporters after his speech at an event hosted by the Economic Club of Las Vegas said "The September FOMC meeting seems an appropriate time to do that." He also said he was comfortable that the Fed could raise interest rates one more time this year.
Breaking news: Tesla announces a smaller than expected loss in its earnings announcement but revenues topped estimates up $2.79bn from $1.7bn in the year-ago period.