The DJIA ended a wild session higher, as traders weighed a Fed decision, AAPL earnings, and rebounding oil
In a matter of minutes, the Dow Jones Industrial Average (DJIA) gave up a triple-digit lead in the aftermath of the latest Fed policy decision, only to recover its gains -- and move even higher -- in the final hour of trading. The Federal Open Market Committee (FOMC) left interest rates near zero, but suggested a 2015 rate hike is still a possibility. Before the announcement, a rebound in crude prices and the latest batch of earnings -- most notably, a strong performance from Apple Inc. (NASDAQ:AAPL) -- was fueling the blue-chip index higher. Tomorrow could be another wild ride as well, with the preliminary reading on third-quarter gross domestic product (GDP) set for release.
Continue reading for more on today's market, including:
The Dow Jones Industrial Average (DJIA - 17,779.52) recovered from a post-Fed dive to finish with a 198.1-point, or 1.1%, win. Twenty-six of the 30 Dow components closed with gains, led by AAPL's 4.1% post-earnings triumph. Procter & Gamble Co (NYSE:PG) closed 1% lower, making it today's biggest blue-chip loser.
The S&P 500 Index (SPX - 2,090.35) followed suit with a 24.5-point, or 1.2%, gain. The Nasdaq Composite (COMP - 5,095.69) beat out its index peers, closing 65.5 points, or 1.3%, higher, but stopping short of 5,100.
The CBOE Volatility Index (VIX - 14.33) closed 1.1 point, or 7.1%, lower, ending below its 10-day moving average for the fifth straight day.
5 Items on Our Radar Today:
- As expected, the FOMC announced no interest rate hike and gave no firm answer as to whether an increase can be expected in December. Weak exports, a slower pace of job growth, and inflation were cited for leaving rates at the zero level for the time being. (CNBC)
- The top 10 Republican candidates for the presidency are preparing to take the stage in Boulder, Colorado, just after 8 p.m. ET, to debate many of the top issues affecting the nation. Meanwhile, Republicans nominated Wisconsin's Paul Ryan to replace John Boehner (R-Ohio) as House Speaker. (Reuters; MarketWatch)
- After much speculation, Diamond Foods, Inc. (NASDAQ:DMND) announced that it will be bought by Snyder's-Lance Inc (NASDAQ:LNCE), giving DMND's option bulls the boost they've been looking for.
- American International Group Inc (NYSE:AIG) rallied after Carl Icahn revealed he has taken a "large stake" in the company, which he also recommended be split into three parts.
- The latest drugmaker getting burned in the market was Intercept Pharmaceuticals Inc (NASDAQ:ICPT), with shares dropping on ugly data.
Commodities:
Oil broke its three-day losing streak to settle at its highest level in about a week. A decrease in gas and distillates stocks trumped a weekly uptick in crude supplies, and the December contract rose a healthy $2.74, or 6.3%, to close at $45.94 per barrel. It was the best day for crude in three months.
December-dated gold futures rose $10.30, or 0.9%, ahead of the Fed announcement, settling near a weekly high of $1,176.10 an ounce. After the Fed stood pat on rates, though, gold futures fell in after-hours action.