Key Takeaways
- U.S. equities were higher at midday as August retail sales were higher than anticipated and the Fed began a two-day meeting expected to produce interest-rate cuts. ,
- Intel said it was spinning off its contract chipmaking business and signed an agreement to make semiconductors for Amazon’s Amazon Web Services. Dividend news lifted shares of Microsoft.
- Cigna sued the Federal Trade Commission over a report on pharmacy benefit manager pricing practices.
U.S. equities advanced around midday Tuesday following the news that retail sales rose more than expected in August, and as the Federal Reserve began a two-day meeting where it’s expected policymakers will begin cutting interest rates.
The Dow added to its all-time high set yesterday. The S&P 500 and Nasdaq also gained.
Intel (INTC) was the best-performing stock in the Dow after the semiconductor maker said it would turn its contract manufacturing business into a separate subsidiary, and struck a deal to make chips for Amazon’s (AMZN) Amazon Web Services. Amazon shares were up as well.
Shares of Microsoft (MSFT) rose as the software giant announced it was boosting its dividend by 10.7% and approved a $60 billion stock buyback. Dell Technologies (DELL) shares climbed as Mizuho initiated coverage with an “outperform” rating, pointing to tech firm’s strength in the soaring generative artificial intelligence (AI) product market.
Cigna Group (CI) shares fell. The insurer’s Express Scripts pharmacy-benefits unit sued the Federal Trade Commission over a recent report by regulators critical of pricing by benefit managers. Shares of Philip Morris International (PM) declined when the tobacco company sold its asthma inhaler maker Vectura Group to Molex Asia Holdings for $198 million.
Oil futures were up. Gold prices dropped. The yield on the 10-year Treasury note was higher. The U.S. dollar increased versus the pound and yen. Most major cryptocurrencies traded in the green.