Yesterday, the Federal Reserve launched the FedNow instant-payments service. It went live after several years in development and is aimed at accelerating cash transactions for businesses and individuals.
According to the Fed, FedNow will improve the flow of money in the US economy. Benefits presented by the service include instant paychecks, the ability to make last-minute payments, or sending government payments out to individuals. "The Federal Reserve built the FedNow service to help make everyday payments over the coming years faster and more convenient," Fed Chairman Jerome Powell said. "Over time, as more banks choose to use this new tool, the benefits to individuals and businesses will include enabling a person to immediately receive a paycheck, or a company to instantly access funds when an invoice is paid."
The launch of FedNow was welcomed by the American Bankers Association. "We will continue to educate our members on the two systems and the benefits they offer consumers and businesses," ABA president and CEO Rob Nichols said.
Some experts have already started speculating that FedNow and its active adoption could mitigate the need for creating a central bank digital currency (CBDC). As of late, there have been active discussions on this matter, and officials from the Federal Reserve are exploring the possibilities of implementing a CBDC.
Premarket movers
Shares of transportation company CSX fell by 5% after it failed to meet economists' revenue expectations in the second quarter. CSX reported revenue of $3.7 billion, lower than the $3.74 billion expected by analysts. Earnings per share came in line with consensus estimates at 49 cents.
Capital One's stock price remained mostly unchanged following a mixed earnings report. The company reported an adjusted profit of $3.52 per share with second-quarter revenue standing at $9.01 billion. Analysts were expecting adjusted profit per share of $3.23 on revenue of $9.12 billion.
Shares of PPG Industries' shares dropped by 2.2% despite the paint manufacturer posting a strong quarterly financial report. The company reported earnings of $2.25 per share and revenue of $4.87 billion, while analysts had forecasted earnings of $2.14 per share and revenue of $4.84 billion. The company also raised its profit forecast for the current quarter and year.
As for the technical outlook on the S&P 500, demand for the index remains strong. Bullish traders have an opportunity to sustain the upward trend, but they must push the index to consolidate above $4,557 and $4,582. Breaching this level could propel the index towards $4,609. Another priority task for the bulls is to maintain control above $4,637 to strengthen the bull market. If the index declines amid decreasing risk appetite, buyers must act around $4,539. A breakout below this level would quickly push the trading instrument back to $4,515 and open the way to $4,488.
