The DJIA tacked on 140 points, after an unexpected drop in the CPI kept rate-hike expectations in check
The Dow Jones Industrial Average (DJIA) notched another triple-digit gain, as pre-Fed traders once again chose to abide by the "bad news is good news" mantra. Specifically, although the consumer price index (CPI) unexpectedly declined last month, many believe this could cause the Fed to delay raising interest rates. The Federal Open Market Committee (FOMC), which has been keeping tabs on inflation and employment, is slated to unveil its highly anticipated policy decision tomorrow afternoon. Also helping to stoke the risk-on flames was a big rally in energy; October-dated crude jumped more than 5%, after domestic inventories declined.
Continue reading for more on today's market, including:
The
Dow Jones Industrial Average (DJIA - 16,739.95) spent almost the entire session in the green, closing with a 140.1-point, or 0.8%, win -- and notching its highest settlement since Aug. 20. All but one Dow component closed higher, led by
General Electric Company's (NYSE:GE) 2.5% pop. Verizon Communications Inc. (NYSE:VZ) was the sole decliner, shedding 0.4%.
The
S&P 500 Index (SPX - 1,995.31) came within striking distance of the 2,000 mark, closing with a 17.2-point, or 0.9%, gain. The
Nasdaq Composite (COMP - 4,889.24), meanwhile, lagged its peers, adding 28.7 points, or 0.6%.
The
CBOE Volatility Index (VIX - 21.35) gave back 1.2 points, or 5.3%, to finish at its lowest mark since Aug. 20.


5 Items on Our Radar Today:
- The consumer price index (CPI) unexpectedly declined in August for the first time since January -- keeping inflation well below the Federal Reserve's 2% target. Elsewhere on the economic front, homebuilder sentiment jumped to its highest mark in almost a decade. (Bloomberg)
- Ahead of next week's state visit by Chinese President Xi Jinping, President Barack Obama equated recent hacking incidents that have been blamed on Beijing as "industrial espionage" and "an act of aggression that has to stop." Additionally, Obama said that it's not a "matter of us being mildly upset," and if the U.S. "wanted to go on the offense, a whole bunch of countries would have significant problems." (USA Today)
- Schaeffer's contributor Adam Warner on how the market is pricing in tomorrow's "Biggest. Fed. Decision. Ever."
- M&A activity was rampant on the Street today, with Adept Technology Inc (NASDAQ:ADEP) and Anheuser Busch Inbev SA (ADR) (NYSE:BUD) soaring in the wake of their respective announcements.
- The brokerage bunch was less than enthused with Hewlett-Packard Company's (NYSE:HPQ) cost-cutting plans.



Commodities:
Crude oil rose for a second straight session, after the Energy Information Administration (EIA) said domestic inventories surprisingly declined for the first time in three weeks -- and by the largest amount in seven months. By the close, crude for October delivery jumped $2.56, or 5.7%, to end at $47.15 per barrel.
The unexpected drop in the CPI sent gold higher today, with the December-dated contract adding $16.40, or 1.5%, to end at $1,119 per ounce -- the malleable metal's best day in almost a month.