Federal Reserve opts to keep rates unchanged
On Wednesday, the Federal Reserve announced that it would be keeping its benchmark interest rate unchanged.
The news came as the bank continued to monitor the progress of the U.S. economy, stating that the post-pandemic rally was “strengthening”.
In a statement following the announcement, the FOMC mentioned that, “The sectors most adversely affected by the pandemic have shown improvement but have not fully recovered”.
They went on to add that, “Inflation has risen, largely reflecting transitory factors. Overall financial conditions remain accommodative, in part reflecting policy measures to support the economy and the flow of credit to U.S. households and businesses”.
Gold marginally moved on the news, whilst the major U.S. indices remained predominantly unchanged.
Google, Apple Q2 earnings beats expectations
Tech earnings continued this week, with two more titans of the industry releasing their Q2 figures.
Google set the pace, by reporting that it recorded revenue for the quarter of $61.88 billion vs $56.16 billion expected.
Earnings also came in higher than expected, with EPS coming in at $27.26 vs $19.34 per share, overall advertising revenue rose close to 69% from the same period last year.
Apple also surpassed both its revenue and earnings expectations, reporting EPS of $1.30 vs. $1.01, and revenue of$81.41 billion vs. $73.30 billion estimated.
Shares in Alphabet ($GOOG) were up by over 3% as of writing, with $APPL down 1.22%.
Oil prices increase as inventories fall
Oil prices marginally increased on Wednesday, as it was reported that U.S. oil inventories unexpectedly fell last week.
It was reported that inventories dropped by 4.089 million barrels last week, compared with analysts’ expectations for a draw of 2.928 million barrels.
The move sent WTI to an intraday $72.90, which was the highest price it has traded this week.
Oil prices have mainly begun to consolidate in recent days, following last week’s rally in the aftermath of the OPEC+ output agreement.
Quote of the day – “I don’t think you can get to be a really good investor over a broad range without doing a massive amount of reading. I don’t think any one book will do it for you.”– Charlie Munger