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The Dow Jones Industrial Average gained 86 points, or 0.31%, in the opening minutes of trading while the S&P 500 and the Nasdaq Composite were 0.34% and 0.24%, respectively.
The Federal Reserve is widely expected to keep interest rates and policy on hold as it continues to monitor the U.S. economy’s rebound from the sharpest slowdown of the post-World War II era.
Looking at stocks, financial were among the leaders as traders awaited the Fed's decision.
Energy shares also gained as Hurricane Sally produced two feet of rain as its made landfall on the Alabama coast and worked its way through the Florida Panhandle.
The slow-moving storm caused West Texas Intermediate crude oil to climb $1.80 to $40.08 a barrel and RBOB gasoline to jump 4.15 cents to $1.1796 a gallon as a number of refineries were at risk of flooding and remaining idled.
Meanwhile, mega-cap tech stocks that have driven the market, including Apple Inc., Amazon Inc. and Tesla Inc. traded lower.
A CFIUS decision on Oracle Inc.’s “trusted tech partnership” with Chinese-owned social media app TikTok is imminent.
TickerSecurityLastChangeChange %AAPLAPPLE INC.113.17-2.37-2.05%AMZNAMAZON.COM INC.3,127.80-28.34-0.90%TSLATESLA INC.445.16-4.60-1.02%ORCLORACLE CORPORATION61.23+0.29+0.48%NKLANIKOLA CORPORATION33.34+0.51+1.54%
Nikola Corp. shares remaind in focus as investors continued to digest a report from short-seller Hindenburg Research that accused the electric-truck maker of fraud. Nikola, which has called the claims “false and deceptive” is under investigation from the U.S. Securities and Exchange Commission.
Elsewhere, Eli Lily reported its COVID-19 antibody treatment’s mid-stage trial reduced the hospitalization rate for patients diagnosed with mild or moderate cases.
A law firm hired by the Eastman Kodak Co.’s board of directors said securities transactions made by CEO Jim Continenza upon learning about a $765 million government loan to aid a pivot into producing generic drug ingredients did not violate internal policies. The situation remains under investigation by the U.S. regulators and Congress.
Dow component Boeing Co. made a number of missteps in the certification of the 737 Max aircraft that lead to two deadly crashes, according to an 18-month long investigation conducted by a U.S. House panel.
Looking at earnings, FedEx Corp.’s quarterly profit rose 60% from a year ago to $4.87 a share, boosted by a surge in online shopping due to COVID-19. The parcel delivery service said it will raise shipping rates by 4.9% to 5.9%, beginning in January.
U.S. Treasurys were little changed with the yield on the 10-year note holding near 0.675%.
European markets were quiet with Britain's FTSE off 0.44%, Germany’s DAX up 0.29% and France’s CAC higher by 0.13%.
In Asia, Japan’s Nikkei edged up 0.09% as Yoshihide Suga was elected the country’s prime minister. Elsewhere in the region, Hong Kong’s Hang Seng slipped 0.03% and China’s Shanghai Composite shed 0.36%.