Powell: Rates are "just below" neutral
The Dow spent the session in positive territory today, ending with a gain of more than 600 points -- its best day since March. The surge came after the much-anticipated speech from Fed Chair Jerome Powell, in which he indicated that the benchmark interest rate is "just below" neutral -- a far cry from his October statement of being a "long way" from neutral. Meanwhile, the Fed's inaugural financial stability report warned that markets could plummet on "an escalation in trade tensions, geopolitical uncertainty, or other adverse shocks."
Continue reading for more on today's market, including:
- The best FAANG stock to own this holiday season.
- Barnes & Noble got a lift after buyout buzz.
- 2 toy stocks headed for the naughty list this Christmas.
- Plus, 2 cloud stocks react to earnings; WB, SINA stocks rally; and options traders remain bearish on Workday ahead of earnings.
The Dow Jones Industrial Average (DJI - 25,366.43) leaped 617.7 points, or 2.5% today. All but one of the 30 Dow stocks made gains today, with Boeing (BA) and Caterpillar (CAT) at the top of the list with 4.9% gains, and Verizon the lone outlier, down 1%.
The S&P 500 Index (SPX - 2,743.78) added 61.6 points, or 2.3%, for its best day since March, while the Nasdaq Composite (IXIC - 7,291.59) gained 208.9 points, or nearly 3%.
The Cboe Volatility Index (VIX - 18.49) dropped 0.5 point, or 2.8%.
5 Items on our Radar Today
- Ford announced today that it would be cutting shifts at its Louisville, Kentucky, and Flat Rock, Michigan, assembly plants, but will be keeping employees. Just yesterday, General Motors announced plans to shutter several North American plants. (CNBC)
- Two U.S. pipelines, Energy Transfer LP and its subsidiary Sunoco, have accumulated at least 800 permit violations between them, on both state and federal levels. The two companies have received most of these violations in a race to construct natural gas pipelines through much of the Appalachia region. (Reuters)
- 2 cloud stocks floating on air after earnings.
- Why Weibo and SINA stocks surged.
- How options bears might fair after tomorrow's Workday earnings.
Data courtesy of Trade-Alert
Gold Higher on Fed Comments
Oil prices fell today, after U.S. crude stockpiles rose for the 10th consecutive week. Additionally, a decision has yet to be made by The Organization of the Petroleum Exporting Countries (OPEC) on output cuts, though Saudi Arabia said it will not cut production alone. January-dated oil dropped $1.27, or 2.5%, settling at $50.29 per barrel -- a new annual low.
Gold found its footing today as the U.S. dollar fell in response to Powell's implied slowing of interest rate hikes. Gold for December delivery added $10.20, or 0.8%, ending at $1,223.60 per ounce.