Dow Jones Industrial Average Turns Tail as Global Risks Spook Fed

Fed Decision Does Dow In; Plus, Don't Take Your Eye Off This VIX Level

by Karee Venema

Published on Sep 17, 2015 at 4:28 PM
Updated on Jun 24, 2020 at 10:16 AM

After months of anticipation, the September Fed meeting has come and gone, with the Federal Open Market Committee (FOMC) choosing to stand pat on its current monetary policy (and perhaps delay volatile moves for these three sectors). Specifically, the central bank explained that it's "monitoring developments abroad," although Fed Chair Janet Yellen noted in her subsequent press conference that these events "have not fundamentally altered" the Fed's view of the U.S. economy. The decision took the wind out of the bulls' sails, with the the Dow Jones Industrial Average (DJIA) surrendering a near 200-point lead and snapping its two-day winning streak.

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

 

The Dow Jones Industrial Average (DJIA - 16,674.74) was up more than 193 points at its intraday peak, before closing down 65.2 points, or 0.4%. Nineteen of the Dow's 30 components settled in the red, paced by JPMorgan Chase & Co.'s (NYSE:JPM) 2.3% drop. UnitedHealth Group Inc (NYSE:UNH) led the 11 advancers with its 1.7% pop.

The S&P 500 Index (SPX - 1,990.20) also erased early gains, giving back 5.1 points, or 0.3%. The Nasdaq Composite (COMP - 4,893.95), meanwhile, outpaced its peers, thanks to a big day in the biotech sector -- tacking on 4.7 points, or 0.1%.

In intraday action, the CBOE Volatility Index (VIX - 21.14) breached the round-number 20 mark for the first time since Aug. 20, but pared these losses to 0.2 point, or 1%, by the close.


150917recap1

150917recap2


5 Items on Our Radar Today:

 

  1. By a vote of 9-to-1, the FOMC chose to keep interest rates unchanged, explaining, "recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near term." Richmond Fed President Jeffrey Lacker was the sole dissenter, which isn't too surprising, given recent comments. (MarketWatch)
  2. Similar to one of its sector peers, American Airlines Group Inc (NASDAQ:AAL) was forced to ground a number of flights today due to a technical glitch. Specifically, the company's website flashed "system alert" messages, forcing the airline to stop flights for nearly two hours. (Bloomberg)
  3. If history is any guide, both American International Group Inc (NYSE:AIG) and Mastercard Inc (NYSE:MA) could be poised for a big bounce.
  4. The same could be said for Amazon.com, Inc. (NASDAQ:AMZN), which launched a round of products today -- and unveiled a new partnership.
  5. Option bears have been upping the ante on this pair of automotive laggards.

150917recap3

150917recap4

150917recap5

Commodities:

 

Crude oil snapped its two-day winning streak, following the Fed's announcement -- and Wednesday's big gains. By the close, October-dated crude was down 25 cents, or 0.5%, at $46.90 per barrel.

Gold, meanwhile, closed lower ahead of the Fed announcement -- with the December-dated contract shedding $2, or 0.2%, at $1,117 per ounce. However, after the central bank unveiled its policy statement, the dollar headed south -- and the malleable metal moved higher in electronic trading.


A Schaeffer's 39th Anniversary Exclusive!

8 Top Stock Picks for 2020

Access your FREE insider report before it's too late!


  
 
 

Partnercenter