The central bank is divided about further rate cuts this year
The Dow finished higher today -- erasing a more than 200-point intraday loss -- as last-minute buyers swooped in during the final 30 minutes of trading. Wall Street reacted to the Federal Open Market Committee's (FOMC) decision to cut interest rates by one-quarter point, though the Fed's corresponding statement implied the central bank is divided about further action this year.
Prospects of another rate cut in 2019 also dimmed after Fed Chair Jerome Powell noted in a subsequent press conference that a "sequence" of rate cuts could be delivered if needed, but is not currently necessary. President Donald Trump took to Twitter to air out his grievances, calling it another "Fail" for the Fed, and saying the central bank has "No 'guts,' no sense, no vision!"
Continue reading for more on today's market, including:
- Bulls should keep an eye on these 2 defense stocks.
- Adobe stock was slammed with rare bear notes after earnings.
- Plus, a big day for the S&P 500's latest member; big options bets on red-hot LXRX; and Baker Hughes bulls active.
The Dow Jones Industrial Average (DJI - 27,147.08) recorded a 36.3-point, or 0.1%, gain. JPMorgan Chase (JPM) had the best day of the 17 blue-chip gainers, finishing up 1%, while Dow Inc (DOW) led the 13 laggards once more with its 1% drop.
The S&P 500 Index (SPX - 3,006.73) tacked on 1 point, or 0.03%, while the Nasdaq Composite (IXIC - 8,177.39) closed down 8.6 points, or 0.1%.
The Cboe Volatility Index (VIX - 13.95) shed 0.5 point, or 3.4%.
5 Items on our Radar Today
- President Trump named his latest national security advisor today, tapping Robert O'Brien to replace the dismissed John Bolton. O'Brien --Trump's fourth national security advisor -- previously served as the Special Presidential Envoy for Hostage Affairs at the State Department. (MarketWatch)
- President Trump also said via tweet that he ordered the U.S. Treasury to increase sanctions against Iran. This comes after Saudi Arabia showed evidence that the attack on its oil facilities was “unquestionably sponsored” by Tehran. Iran has denied involvement. (Reuters)
- CDW stock hit a fresh high after joining the S&P 500.
- LXRX options trading took off today amid hot streak.
- Baker Hughes bulls were active today.
Data courtesy of Trade-Alert
Oil Extends Losses; Gold Pivots Lower After Fed
Oil fell today for the second straight day, still reacting to news Saudi Arabian crude production will ramp up quicker than anticipated. Plus, the U.S. reported a weekly rise in domestic crude inventories. October-dated crude futures fell $1.23, or 2.1%, to settle at $58.11 per barrel.
Gold gained for the third straight day, but promptly pivoted lower in electronic trading following the Fed's interest rate decision. Prior to the Fed news, gold for December delivery closed up $2.40, or 0.2%, at $1,515.80 an ounce.