MARKET SNAPSHOT: Stock Market Ends At Record On Robust Earnings As Fed Issues Policy Update

Boeing's stock has best day since 2008

U.S. stock-market benchmarks on Wednesday finished modestly higher, with all three gauges recording all-time highs, supported by better-than-expected corporate results, and as the Federal Reserve offered an update to its monetary-policy outlook.

The Dow Jones Industrial Average advanced 97.58 points, or 0.5%, to close at a record of 21,711.01. Boeing Co.(BA) shares surged nearly 10% to its own all-time high, logging its best daily climb on a percentage basis since Oct. 28, 2008, according to WSJ Market Data Group.

The S&P 500 index eked out a meager 0.70 point rise to end at 2,477.83, with telecoms climbing 3% on the back of stronger-than-expected earnings from AT&T.

The Nasdaq Composite Index added 10.57 points, or 0.2%, to close at a record at 6,422.75.

"The market is right to be driven by earnings and so far we've had enough upside surprises. Because it has been the most hated bull market, there is still room to grow," said Kim Forrest, senior portfolio manager at Fort Pitt Capital.

The Fed's statement, meanwhile, wasn't substantially different from its previous remark and recent testimony on Capitol Hill from Janet Yellen, but the central bank did touch on subdued inflation, giving Wall Street participants the impression that the central bank would take extra care in normalizing monetary policy. That could mean a more moderated pace of rate hikes as the Fed also intends on unwinding its $4.5 trillion crisis-era balance sheet. The Fed kept rates unchanged on Wednesday.

Read:Fed to wind down bondholdings 'relatively soon' (http://www.marketwatch.com/story/fed-to-wind-down-bond-holdings-relatively-soon-2017-07-26)

"The main message from the July FOMC statement was that the Committee is very likely to announce the starting date for running down its balance sheet at the September meeting, but it is worried about inflation," Paul Mortimer-Lee, chief economist for North America at BNP Paribas, said in a note.

Eric Winograd, senior economist at AllianceBernstein, meanwhile, predicted the Fed could start tapering its balance sheet as early as September given its reference to "relatively soon" rather than "this year" in previous statements.

Economic docket: The Commerce Department said new-home sales in June came in at a 610,000 annual pace, a pickup of 0.8% from downwardly revised May data.

Stock movers: Shares in Advanced Micro Devices Inc.(AMD) soared 4.6% after the chip maker reported stronger-than-anticipated earnings (http://www.marketwatch.com/story/amd-jumps-after-beating-on-earnings-raising-forecast-2017-07-25) and raised its guidance late Tuesday.

See:AMD earnings give investors what they wanted, now it must deliver more (http://www.marketwatch.com/story/amd-earnings-give-investors-what-they-wanted-now-it-must-deliver-2017-07-25)

Telecom (http://www.marketwatch.com/story/att-shares-rise-more-than-2-as-company-beats-earnings-expectations-2017-07-25) company AT&T Inc. (T) jumped 5% after the company posted better-than-expected earnings late Tuesday.

Healthy burrito chain (http://www.marketwatch.com/story/chipotle-shares-rise-as-earnings-beat-wall-streets-estimates-2017-07-25)Chipotle Mexican Grill Inc.(CMG) initially rose following stronger-than-expected results, but reversed to trade 2.3% lower.

Biotech giant Amgen Inc.(AMGN) fell 2.8% following its quarterly report (http://www.marketwatch.com/story/amgen-shares-down-3-after-companys-guidance-on-lower-end-of-expectations-2017-07-25).

Coca-Cola Co.(KO) gained 1.1% after the beverage company reported better-than-expected earnings and lifted its full-year earnings outlook. It also announced that Coca-Cola would replace Coke Zero (http://www.marketwatch.com/story/coca-cola-to-replace-coke-zero-in-us-2017-07-26).

Ford Motor Co.(F) shares fell 1.9% even thought the car maker reported earnings above Wall Street expectations and gave positive guidance for the full year.

Insurer Anthem Inc.(ANTM) shares slid 2.9% as quarterly earnings came in above expectations, but revenue fell short.

Other markets: European stock markets were uniformly higher while Asian markets (http://www.marketwatch.com/story/japan-aussie-stocks-continue-to-rise-spurred-on-by-commodity-prices-2017-07-26) closed mixed. Gold futures settled lower, but jumped in electronic trade, and a key dollar index reversed course to fall 0.2% following the Fed decision.

Oil futures settled at a two-month high (http://www.marketwatch.com/story/oil-rally-continues-as-optimism-builds-ahead-us-supply-data-2017-07-26) in part on data that showed that U.S. inventories have fallen sharply for a fourth straight week.

See:Here's why oil just scored its biggest one-day rally of 2017 (http://www.marketwatch.com/story/why-oil-prices-scored-their-biggest-one-day-rally-of-2017-2017-07-25)

(END) Dow Jones Newswires

July 26, 2017 17:33 ET (21:33 GMT)