Stocks trading lower today as investors digest a mixed report from Apple and look toward today’s Fed policy update

Apple Inc. (AAPL), the world’s largest corporation in terms of market value, saw its share prices sink following a disappointing earnings report. Although earnings were better than expected, most were let down by sales numbers and guidance figures.  Investors are also looking toward the fact that the S&P 500 index has been somewhat underperforming against expectations and market sentiments.

A policy update from Federal Reserve officials is scheduled for 2 p.m Eastern today. Most are expecting rates to hold, but will look to these statements for tone and context around future updates.

The Dow is currently down 0.08%, or 15.54 points, at 20,934. The Nasdaq-100 is down 0.46% at 6,067 and the S&P 500 is currently trading at 2,386 which is down 0.23% from the open. Apple is a main component of the S&P 500 index.

Using the ^GSPC symbol to analyze the S&P 500, our 10-day prediction window shows overall negative signals. Today’s positive vector figure of +0.19% moves  to -0.33% in the next three sessions. Today’s support and resistance is 2,388.64 (± 4.93) and 2,409.47 (± 4.97), respectively. The predicted close today is 2,390.06.   

Oil

Crude oil is trading choppy today as U.S domestic production reports show crude inventories falling for a fourth straight week. The drop in supplies was less than analysts expectations, however. Although U.S supplies have dropped, production is continuing at a relatively rapid pace. This dynamic will be weighing on OPEC countries when the time comes to decide on an extension of the global production cut deal which began last November.  West Texas Intermediate for June delivery is currently priced at $47.59 per barrel, down 0.17% from the open.

Looking at USO, a crude oil tracker, our 10-day prediction model shows overall positive movement. The fund is currently trading at $9.93, which is up 0.10% from the open. Today’s prediction sees support at $9.85 (± 0.05) and resistance at $10.20 (± 0.05). The predicted close for today is $9.89. Vector figures show -0.65% for today, but climb to +0.93% within three sessions. All vector figures are based on today’s market conditions.  

Gold

The price for June gold is currently down 0.63% at $1,249.10 a troy ounce. Investor anticipation of a Federal Reserve policy update has caused prices to drop, and the update will be issued after gold futures prices are cemented Wednesday afternoon. Indications of higher interest rates in the future will work against gold, as the asset does not provide a yield. Higher interest rates also boost the value of the U.S dollar, the currency in which the yellow metal is priced in. A stronger dollar makes gold unattractive to foreign investors who hold different currencies.  

Using SPDR GOLD TRUST (GLD) as a tracker in our Stock Forecast Tool, the 10-day prediction window shows consistent downward movement. The gold proxy is currently trading at $118.77, down 0.73% from the open. Today’s predicted low is $118.30 (± 0.28) and the predicted high is $119.65 (± 0.28). The predicted close today is $118.91.  

Treasuries

Treasury yields are rising ahead of the Federal Reserve policy update scheduled later Wednesday afternoon. There are wide expectations that interest rates will not change with this current policy update, but there may be an indication of future rate hikes. The yield on the 10-year Treasury note is up 0.55%, currently trading at  2.29%. Bond prices and yields are inversely related to one another

Using the iShares 20+ Year Treasury Bond ETF (TLT) as a proxy for bond prices in our Stock Forecast Tool, we see overall negative movement in our 10-day prediction window. Relative to current conditions, we see vector figures moving from -0.07% today to -1.25% in four trading sessions.  The ETF is currently priced at $122.13- up 0.35% from the open. The predicted close today is $121.29 with a low and high of $120.37 (± 0.25) and $121.70 (± 0.25), respectively.  

Volatility

The CBOE Volatility Index (VIX) is currently up 2.64% from the open at 10.87. Relative to today’s conditions, the 10-day prediction window shows strong positive movement. The predicted close today is 11.30 with a positive vector of +4.02%. Today’s predicted lows and highs are 9.79 (± 0.24) and 11.36 (± 0.28), respectively.