The DJIA trimmed its deficit after the early release of the Fed minutes
Despite a valiant attempt to claw its way into the black, the Dow Jones Industrial Average (DJIA) ended in the red -- though well off its intraday low. The blue-chip barometer was down roughly 230 points at one point -- pressured by a global stock rout and crude oil's demise -- but pared its losses after the premature release of the Federal Open Market Committee (FOMC) July meeting minutes. The report showed that most central bankers think the environment suitable to a rate hike -- the first in almost a decade -- is "approaching," underscoring expectations for a September lift. Against this backdrop, other major indexes trimmed their deficits by the close, and if history is any guide, the S&P 500 Index (SPX) could be volatile tomorrow.
Continue reading for more on today's market, including:
The Dow Jones Industrial Average (DJIA - 17,348.73) was down about 229 points at its intraday low, and peeked above breakeven after the Fed release, but settled on a loss of 162.6 points, or 0.9%. Just three Dow components avoided the red -- McDonald's Corporation (NYSE:MCD) added 0.3%, Nike Inc (NYSE:NKE) edged 0.1% higher, and Merck & Co., Inc. (NYSE:MRK) finished flat. Oil issue Chevron Corporation (NYSE:CVX) paced the losing majority with a 3% drop.
The S&P 500 Index (SPX - 2,079.61) also inched closer to breakeven in post-Fed action, but couldn't break into the black, ending 17.3 points, or 0.8%, lower. The Nasdaq Composite (COMP - 5,019.05) dipped beneath the key 5,000 level around midday -- and spent a minute in positive territory after the Fed minutes -- before ending on a loss of 40.3 points, or 0.8%.
The CBOE Volatility Index (VIX - 15.25) pared its lead after the Fed release, but added 1.5 points, or 10.6%, by the close -- marking its highest settlement and first close above its 200-day trendline since July 27.
5 Items on Our Radar Today:
- The Fed's highly anticipated meeting minutes were released around 1:45 p.m. ET (15 minutes early), after Bloomberg inadvertently broke the embargo. Last month, the central bank accidentally published confidential staff forecasts, usually withheld five years. (MarketWatch)
- Consumer prices rose by less than expected in July, but still edged higher for a sixth straight month. The Labor Department's consumer price index (CPI) and core CPI -- which excludes volatile food and energy -- both ticked 0.1% higher. (Reuters)
- This solar name was one of the biggest SPX-listed losers of the day.
- Why GoPro Inc (NASDAQ:GPRO) bears were out in full force.
- What helped Google Inc (NASDAQ:GOOGL) buck the trend lower.
Commodities:
Crude oil plummeted to a new six-year low, due to a surprise increase in domestic inventories. By the close, September-dated oil -- which expires tomorrow -- was down $1.82, or 4.3%, at $40.80 per barrel, marking its lowest settlement since March 2009.
On the other hand, the stars aligned for gold today. A cooling dollar and a stock sell-off helped December-dated gold to a gain of $11, or 1%, to finish at $1,127.90 an ounce. What's more, gold extended its lead in after-hours trading, following the Fed minutes.