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US Stocks Up on Stable Interest Rates Wednesday

U.S. stocks were in the green on Wednesday after Federal Reserve Chair Jerome Powell suggested that interest rates would remain stable. The Dow Jones Industrial Average gained 0.25% to 27,758, the S&P 500 Index rose 0.14% to 3,096 and the Nasdaq Composite Index increased 0.10% to 8,494.

Non-index stocks have also posted gains and losses recently. Shares of Luckin Coffee Inc. (NASDAQ:LK) gained more than 13% on Wednesday after the company announced third-quarter results. The company posted a loss of 32 cents per share, beating estimates by 6 cents. Revenue of $208.9 million was in line with expectations.

"We are very pleased with our results in the third quarter," CEO Jenny Zhiya Qian said. "We exceeded the high-end of our guidance range, achieved a store level profit margin of 12.5% and experienced continuous growth across all key operating metrics. These achievements follow a clear trend: an increase in volumes, efficiency and, as a result, profitability. During the quarter, product revenue grew at 557.6%, which was 1.2x, 1.4x and 2.7x the growth rate of average monthly items sold, average monthly transacting customers, and number of stores, respectively."

The operating loss for the quarter was 590.9 million yuan ($82.7 million) compared to 485.6 million yuan in the prior-year quarter. Further, the non-GAAP operating loss was 550.1 million yuan, representing 35.7% of total net revenues, versus 485.6 million yuan, or 201.7% of total net revenues a year ago.

Looking ahead to the fourth quarter, the company expects net revenues from products to be between 2.1 billion yuan and 2.2 billion yuan.

During the quarter ended June 30, several hedge fund managers opened new positions in the stock: Philippe Laffont with 514,823 shares, Louis Moore Bacon (Trades, Portfolio) with 400,000 shares, Chase Coleman (Trades, Portfolio) with 300,000 shares and Steven Cohen (Trades, Portfolio) with 1,363,863 shares.


  • Cimarex Energy Co. (NYSE:XEC) +4.3%
  • Walt Disney Co. (NYSE:DIS) +4.3%
  • Advanced Micro Devices Inc. (NASDAQ:AMD) +2.9%
  • Southern Co. (NYSE:SO) +2%
  • Ball Corp. (NYSE:BLL) +1.8%


  • Mosaic Co. (NYSE:MOS) -5.3%
  • Hess Corp. (NYSE:HES) -4.2%
  • Gap Inc. (NYSE:GPS) -3.1%
  • Whirlpool Corp. (NYSE:WHR) -3%
  • L Brands Inc. (NYSE:LB) -2.1%

Global markets

The main European stock markets traded in the red. The U.K.'s FTSE 100 fell 0.19%, France's CAC 40 retreated 0.21%, Germany's Dax slid 0.40% and Spain's IBEX 35 declined 1.21%.

In Asia, Japan's Nikkei 225 fell 0.85%, India's BSE Sensex declined 0.57%, Hong Kong's Hang Seng retreated 1.82% and China's Shanghai Composite swelled 0.33%.

Disclosure: The author holds no positions in any stocks mentioned.

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This article first appeared on GuruFocus.