Wednesday's Market Recap - Stocks Tank After FOMC Rate Hike.
What is The Premarket Telling Us?
7:00 PM.
Today's markets set up is looking positive this morning, ahead of a certain Fed interest rate hike later this afternoon, suggesting the markets may be okay with a rate hike. Major Asian markets closed higher overnight.
On The Bond Desk:
The US 10 Year Bond Yield sits at 3.08%.
Currency Desk:
Euro dollar: 1.17
UK Pound: 1.31
Crude Oil:
WTI crude oil futures at $71.90/barrel, down 0.53%.
On the Earnings Calendar:
Nike beat Q2 quarterly earnings expectation, but the stock is trading lower in the premarket.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets convincingly higher. Japan (Nikkei 225) gained 0.39%, Shanghai up 0.92%, Hong Kong (Hang Seng) rose 1.15%.
Major European markets were also positive in today's session. German (DAX) added 0.09%, France CAC 40 up 0.61%, London FTSE 100 at 0.05%.
Market And Sector Dynamics
Markets got off to a positive start on Wednesday, with the Dow up 35 points, Nasdaq 14 points, S&P up 3 points, seemingly unphased by an almost certain rate hike later this afternoon. Crude oil lower early, WTI down 0.66%, at $71.81/barrel.
August Existing Home Sales rose an annualized, 629,000 sales pace vs the 630,000 estimated.
Stocks traded modest above the flat line for most of the session, and ticked higher after the FOMC announced the twenty five basis point rate hike at 2:00 PM. A short while later stocks fell back to its morning levels, but fell precipitously, a few minutes before the close, and after the end of Fed Chair Jerome Powell's press conference.
Seven of the eleven S&P sectors closed with losses, led by financials, real estate, utilities, basic materials, energy, and technology.
Factors Influencing Today's Market
The Fed/FOMC increased interest rates 0.25% or twenty five basis points.
Despite strong quarterly earnings and revenue performance, shares of Nike traded lower in the session.
Crude oil traded modestly higher in the session. WTI crude oil closed at $72.12/barrel, up 0.77%.
This week's EIA Petroleum Status Report shows crude oil inventory rose 1.9 million barrels to 396 million barrel about 16% below a year ago.
August New Home Sales rose at an annualized 629,000 vs 630,000 expected.
Market Close Volume Traded And Advance Decline Ratio
Stocks were lower at the close. The Dow fell 106.93 points, Nasdaq lost 17.10 points, and the S&P lost 9.59 points. Total NYSE volume traded, a moderate 3.35 billion shares. Decliners outpaced Advancers almost 2:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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