Dow Jones Industrial Average Survives Fed Decision, Soars 198

3 Sizzling Apple Suppliers

by Josh Selway

Published on Oct 28, 2015 at 4:27 PM

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. 

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5 Items on Our Radar Today:

  1. 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)
  2. 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)
  3. 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. 
  4. 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
  5. The latest drugmaker getting burned in the market was Intercept Pharmaceuticals Inc (NASDAQ:ICPT), with shares dropping on ugly data


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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. 


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