The Nasdaq managed another record high before the Fed statement
In another risk-averse session, the Dow finished lower by triple digits today, after the Federal Open Market Committee (FOMC) officially wrapped up its meeting by hiking interest rates, as expected. In addition, the Fed hinted that two more rate hikes are likely later this year, one more than previously expected. Elsewhere, media stocks were in focus all day, as traders continued to digest the ramifications of an approved AT&T-Time Warner merger. By the close, the S&P ended in the red, and while the Nasdaq notched another record high in intraday trading, it failed to eke out out a fourth straight win.
Continue reading for more on today's market, including:
- Muddy Waters: Short this fraudulent Chinese stock.
- The Fed rate hike could send Tyson stock lower.
- Another reason to have AMD stock on your radar right now.
- Plus, an Adobe earnings preview; a brutal FDA rejection; and options traders piled on ATVI during E3.
The Dow Jones Industrial Average (DJI - 25,201.20) shed 119.5 points, or 0.5%. Of the 30 blue chips, seven closed with gains. Walt Disney (DIS) had the best day, adding 1.9%, while Verizon (VZ) paced the 23 losers once again with a 2.9% drop.
The S&P 500 Index (SPX - 2,775.63) gave back 11.2 points, or 0.4%. The Nasdaq Composite (IXIC - 7,695.70) lost 8.1 points, or 0.1%, yet peaked at an all-time best of 7,748.95.
The Cboe Volatility Index (VIX - 12.94) added 0.6 point, or 4.9%.
5 Items on Our Radar Today
- The U.S., Canada, and Mexico will co-host the FIFA World Cup in 2026, the first ever joint bid. The World Cup was last hosted by the U.S. in 1994. Although the three countries are facing heightened trade tensions recently, the efforts to secure the votes at FIFA's congress were universally applauded. (Reuters)
- Bitcoin dropped down to its lowest point since February. A study surfaced today that concluded half of bitcoin's meteoric rise last year was attributed to price manipulation. (CNBC)
- Adobe stock could hit new highs after earnings.
- scPharmaceuticals stock plummeted after an FDA rejection.
- Activision options were popular as E3 kicked off.
Data courtesy of Trade-Alert
Oil Up, Gold Drops In Wake of Fed Decision
Oil prices finished higher today, gaining for the third straight day after U.S. crude supplies fell by a larger-than-forecast amount last week. July-dated crude futures added 28 cents, or 0.4%, to settle at $66.64 per barrel, the highest settlement in nearly three weeks.
Gold prices finished higher today, but slipped in electronic trading following the Fed's rate hike decision. Gold futures for August delivery added $1.90, or 0.2%, to close at $1,301.30 an ounce, but dipped back below the $1,300 level after the Fed decision.