Shares of industrial and transportation companies rallied after the Federal Reserve raised rates by 75 basis points, and hinted that it could be the last rate increase of that size.
The Fed is aiming for benchmark rates of 3% to 3.5% by the end of the year, said Chairman Jerome Powell, in a press conference. That would indicate a gentler path of increases than the steep June and July three-quarter-of-a-percentage point moves.
New orders for durable goods rose 1.9% in June to a seasonally adjusted $272.6 billion, the Commerce Department said. The increase was seen across most categories, including motor vehicles and military aircraft. Excluding defense, orders were up a more modest 0.4%.
Boeing shares were more or less flat after the aerospace giant posted a decrease in second-quarter earnings, reflecting its delayed regulatory approval to resume deliveries of its 787 Dreamliner and charges at its military and space unit.
Airbus cut its aircraft delivery projection for this year and slowed production plans, citing delays in its supply chain that are holding back the European planemaker's aggressive ramp up targets.
The U.S. trade deficit narrowed for the third straight month in June on strong exports, a development that prompted economists at brokerage Goldman Sachs to boost projections for second-quarter economic growth.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
07-27-22 1701ET
