Wednesday's Market Recap - Investors Confusion On Whether FOMC Is Hawkish Or Dovish, Sends Marke
What is The Premarket Telling Us?
7:00 PM.
US stock futures are rather benign ahead of the opening bell. Dow futures down 3.0 points, Nasdaq futures down 17.75 points, and S&P futures are unchanged. The Fed/FOMC will announce it decision on interest rates at 2:00 PM, this afternoon. Investors are expecting a quarter point hike.
On The Bond Desk:
US 10 year bond yield is sitting at 2.88%.
Currency Desk:
Euro dollar at 1.22
UK Pound at 1.40
Crude Oil:
WTI crude oil future at $64.22/barrel, up 1.07%
On the Earnings Calendar:
General Mills reported disappointing quarterly earnings, and reduced full year guidance. Share of the company fell.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets were lower. Japan (Nikkei 225) down 0.47%, Shanghai down 0.43%. Hong Kong (Hang Seng) down 0.29%.
European markets were mostly lower. German (DAX) down 0.01%, France CAC 40 down 0.24%, London FTSE 100 down 0.32%.
Market And Sector Dynamics
US markets opened the trading day mixed. The Dow added 7.71 points, Nasdaq fell 15.35 points, and the S&P lost 2.56 points. Investors may be exercising caution ahead of the Fed/FOMC's decision on interest rates. The US 10 year bond yield has tick up to 2.90%, in anticipation of the announcement.
Markets were mostly flat for most of the morning session, but trended higher early in the afternoon session, and prior to the Fed announcement. By 1:50 PM, markets were higher. The Dow was up 123 points, Nasdaq was up 19 points, and the S&P up 10 points.
Stocks surged after the announcement of the twenty-five basis points rate hike, with the Dow hitting 250 points, as markets seems to cheer the news, because the Fed seemed confident about the economy, suggesting three rate hikes for 2018.
That momentum was short lived, however, as stocks turned lower, shortly after the Fed Chair began his press conference, and continued to decline into a negative close.
Eight of the eleven S&P sectors traded lower in today's session. Led by consumer staples, real estate, telecommunication services, healthcare, and utilities. Energy, basic materials, and utilities, traded higher.
Factors Influencing Today's Market
Fed/FOMC hike interest rates by a quarter point. Investors are having difficulty deciding, if the Fed Chair was dovish or hawkish, leading to increased volatility, in the markets.
US 10 year bond yield ticked up to 2.90% intra-day.
Crude oil prices traded higher in the session. WTI crude oil closed at $65.17/barrel, up 2.79%.
Facebook shares continues to be volatile, intra-day, as the controversy around the misuse of the platform's, data by Cambridge Analitica.
Asian and European stocks were mostly lower in their sessions.
Market Close Volume Traded And Advance Decline Ratio
At the of today's trading session, stocks were modestly lower. The Dow fell 44.96 points, Nasdaq down 19.02 points, and the S&P down 19.02 points. Total NYSE volume traded, 3.37 billion shares. Advancing shares outpaced Declining shares better than even.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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