The S&P 500 index can only take so much bad news before it buckles. With one day absent of any Q3 earnings warnings on Monday, the index mounted a low volume rally. However, after the close, Ford Motor (NYSE: F) offered a confusing warning for Q3, but a reaffirmation of full-year guidance. Obviously, investors are not buying it.
Heading into the FOMC rate decision Wednesday afternoon, many are expecting a .75% rate hike, which may be already priced into the market. What may not be priced is a hike of a full basis point.
On a positive note, the index has put in yet another potential bottom at the 3845 area. Also, the index did distance itself from that low with a late-day rally. For the session, the index declined by 44.5 handles to close at 3872.75. That marks the lowest close for the recent decline.
For the second day in a row, Apple Inc. (NASDAQ: AAPL) was the biggest gainer of the top components. For the session, the issue added $2.42 or 1.52% to close at $156.90.
That is over 3% better than the cash index’s decline of 1.23%.
Alphabet Inc. (NASDAQ: GOOG) was the biggest loser of the top components. For the session, the issue declined by $2.02 or 1.95% to close at $101.83, On a further negative note, the issue breached and closed below its previous 52-week low from May ($102.21).
PreMarket Prep Stock Of The Day: Nike Inc. (NYSE: NKE)
Investors reacted strongly to the Benchmark downgrade. Read more on NKE here.