The DJIA managed a daily and weekly win, and now attention turns to next week's Fed meeting
In another volatile session, the Dow Jones Industrial Average (DJIA) overcame a slow start to finish in the black, bringing its weekly gain to 2.1%. Today's biggest news may have taken place outside of the equities market, though, when Goldman Sachs cut its outlook on oil prices for 2016 -- while offering a worst-case-scenario price of $20 per barrel. But crude wasn't the only commodity hurting today. Gold had a miserable outing, as traders began to prepare for the long-awaited Federal Open Market Committee (FOMC) policy-deciding meeting, scheduled for next week.
Continue reading for more on today's market, including:
The
Dow Jones Industrial Average (DJIA - 16,433.09) explored a range of nearly 200 points on both sides of breakeven, but ultimately ended near a session high, up 102.7 points, or 0.6%. Twenty-five of the 30 Dow components closed in the black, led by McDonald's Corporation's (NYSE:MCD) 2.3% gain. Cisco Systems, Inc. (NASDAQ:CSCO) paced the losers with a 0.9% retreat. The Dow closed the week with a 2.1% lead.
Along similar lines, the
S&P 500 Index (SPX - 1,961.05) fought back for a 8.8-point, or 0.5%, victory. Meanwhile, the
Nasdaq Composite (COMP - 4,822.34) ended 26.1 points, or 0.5%, higher. Respectively, the indexes closed the week 2.1% and 3% higher.
The
CBOE Volatility Index (VIX - 23.20) took a step back, dropping 1.2 points, or 4.8%, and closing
below the key 23.90 level. On a weekly basis, the VIX fell 16.5%.
5 Items on Our Radar Today:
- In an act of political defiance, the House of Representatives voted against a nuclear deal with Iran. Even though the Senate ensured the deal's survival on Thursday, the Republican-led House wanted to send a message to President Obama. (CNN)
- A Goldman Sachs report warned of a scenario where crude prices could plunge to $20 a barrel due to oversupply -- a mark last touched over 10 years ago. Though this was was just the firm's worst-case scenario, crude still fell 2.8% following the report's release. (USA Today Money)
- This semiconductor stock got demolished -- but that's nothing new.
- What was behind SHAK's double-digit percentage gain?
- The small-cap signal we haven't seen since 2006.
Commodities:
Goldman Sachs' report pressured oil prices lower today, as did news that Saudi Arabia doesn't support an emergency meeting of the Organization of Petroleum Exporting Countries (OPEC). Crude for October delivery ended $1.29, or 2.8%, lower at $44.63 per barrel. For the week, liquid gold fell 3.1%.
It was also a rough day for gold, with Fed-related fears weighing on the precious metal. December-dated gold ended the day $6, or 0.5%, lower at $1,103.30 per ounce -- its worst close in roughly a month. For the week, gold dropped 1.6%.