Thanks to Apple Inc (AAPL)’s earnings, S&P’s 500 index reached an all-time high while because of Boeing Co. (BA)’s fall, Dow Jones Industrial Average went lower. Apple Inc. (AAPL) indicated that it will be releasing its new products soon. This announcement proved its worth as the company surged to its highest since the fiscal 2012. Biogen Idec Inc. raised its estimates for the full year by increasing 15% meanwhile Intuitive Surgical Inc. increased by 18%, also exceeding its estimates. Boeing Co. (BA), however, fell by 2.3% as the additional costs for a new military tanker bloom concerns all over. Investors are worried over this long-term project for Boeing Co. (BA) that has generated huge costs in the beginning. Facebook Inc. also reported that it has topped the estimates, thereby increasing its earnings by 0.8%. S&P 500 increased by 0.2% and recorded at 1,987.19 while Dow Jones Industrial Average reduced by 25.63 points and recorded 17,087.91.  Boeing Co. (BA) weighs about 4.8% of Dow’s components, ranking it 6^th largest component.

Russ Koesterich, the chief investment strategist of BlackRock Inc., said over a phone call that overall, the results are showing a positive trend. The earnings have been positive on the top- as well as the bottom-line. Inflation data indicated that Federal Reserve will not be increasing interest rates in the future. As a result, S&P 500 increased yesterday. Janet Yellen, the chair, has said that the interest rates will continue to remain low for quite some time after central bank has stopped the purchases of monthly bonds in October.

The International Monetary Fund said today that because inflation remains muted, the Federal Reserve will probably maintain the interest rates at zero for a long time – even longer than the anticipation of investors! Also, because of the prolonged recovery of the labor-market, the interest rates will remain low. As the earnings were reported for the first quarter, which were lower, the IMF reduced its estimates for the U.S. growth. The estimates were reduced to 1.7% from 2%.

Meanwhile, the S&P 500 increased by 7.5% in the current year. They reported corporate earnings that far exceeded the expectations. This was also thanks to the recovery of the U.S. economy. In the first quarter, the economy had declined by 2.9% but now, it recovered. The gauge is trading at 18.4 times more than the reported earnings, which has been the highest earnings since the fiscal 2010.

The Defense Ministry of Ukraine said that in the country’s eastern part, the rebels managed to down two fighters from the government. The investors are also paying attention to these developments in Ukraine. Yesterday, the European Union threatened Russia. They, the Union, said that they will restrict Russia from the capital markets, defense technologies and even sensitive energy unless Russia does something about the investigation of the Malaysian Airplane crash. The European Union demands that Russian President, Vladimir Putin, must send a probe to investigate the crash of Malaysia Airlines aircraft.

Get Free Updates and Stock Alerts!

*We only send one email per week