Dow Notches Another Record High After Fed Minutes

The FOMC September meeting minutes reaffirmed expectations for a December rate hike

by Katie Coburn |

Published on Oct 11, 2017 at 4:32 PM

Despite a bit of a rocky start, the Dow Jones Industrial Average (DJIA), S&P 500 Index (SPX), and Nasdaq Composite (IXIC) all closed modestly higher today, after minutes from the Federal Open Market Committee (FOMC) September meeting reaffirmed expectations for a December interest rate hike. Although "many participants expressed concern" about low inflation, several think another rate hike in 2017 is "likely to be warranted." As a result, the Dow notched another record high.

Continue reading for more on today's market, including:

  • 25 stocks for short-term option bulls.
  • The sale buzz that helped Kroger stock surge.
  • 2 stocks that took a hit after earnings.
  • Plus, how traders are playing JPMorgan stock ahead of earnings; why one analyst expects record highs for PayPal; and the worst Dow stock of 2017.

The Dow Jones Industrial Average (DJIA - 22,872.89) closed at a record high, ending with a gain of 42.2 points, or 0.2%. Leading the pack of 17 Dow gainers was Johnson & Johnson (JNJ) with a 2.1% gain, while General Electric (GE) paced the 13 losers with a 1.2% drop.

The S&P 500 Index (SPX - 2,555.24) managed to touch a record high of its own at the buzzer, closing at an all-time peak, up 4.6 points, or 0.2%. The Nasdaq Composite (IXIC - 6,603.55) ended up 16.3 points, or 0.3%, for a record closing high.
 
The CBOE Volatility Index (VIX - 9.85) lost 0.2 point, or 2.3%.

Closing Indexes Summary Oct 11
NYSE and Nasdaq Stats Oct 11

5 Items on Our Radar Today

  1. Facebook announced plans to sell a new virtual reality (VR) headset for $199 early next year. Dubbed the "Oculus Go," the headset is designed to work without the help of a phone or computer. (CNBC)
  2. The U.S. men's soccer team did not qualify for the 2018 World Cup tournament for the first time since 1986, after losing to Trinidad & Tobago on Tuesday. The team's 2-1 loss could result in even greater losses for Twenty-First Century Fox (FOXA), which spent $425 million on broadcasting rights. (MarketWatch)
  3. How options traders are playing JPMorgan stock ahead of earnings.
  4. Behind PayPal stock's record high.
  5. Why General Electric ranks as the worst Dow stock of 2017.


Corporate Earnings Oct 11
Unusual Options Activity Oct 11
Data courtesy of Trade-Alert

Commodities

Crude futures rose for a third straight session, after the Organization of the Petroleum Exporting Countries (OPEC) predicted higher demand in 2018. November-dated oil futures ended with a gain of 38 cents, or 0.8%, at $51.30 per barrel.

Gold broke its three-day win streak, as December-dated gold ended down $4.90, or 0.4%, at $1,288.90 an ounce. However, following the September Fed meeting minutes, futures on the malleable metal turned higher.

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