Fed Talk Sends Dow Jones Industrial Average Down 180 Points

Carl Icahn's Strategic Move

by Celeste Taylor

Published on May 17, 2016 at 4:30 PM
Updated on May 17, 2016 at 4:38 PM

The Dow Jones Industrial Average (DJIA) spent the entire session in the red -- and gave back all of yesterday's triple-digit gains -- as rate-hike anxiety overshadowed rising oil prices. Specifically, two Fed officials suggested that the central bank could raise interest rates as early as June -- a theory echoed by this morning's inflation data. The Dow wasn't the only major benchmark to feel the heat ahead of tomorrow's release of the latest Fed meeting minutes, with the S&P 500 Index (SPX) nearly erasing its year-to-date gains and the Nasdaq Composite (COMP) briefly slipping into correction territory -- and notching its worst day since April 7.

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

The Dow Jones Industrial Average (DJIA - 17,529.98) spent the entire day in negative territory, and finished down 180.7 points, or 1%. Among the 30 Dow stocks, only Caterpillar Inc. (NYSE:CAT) and DuPont (NYSE:DD) ended higher, gaining a respective 0.5% and 0.3%, while JPMorgan Chase & Co. (NYSE:JPM) finished flat. The other 27 blue chips settled in the red, with Home Depot Inc (NYSE:HD) worst off, dropping 2.5% on a negative earnings reaction.

The S&P 500 Index (SPX - 2,047.21) lost 19.5 points, or 0.9%, while the Nasdaq Composite (COMP - 4,715.73) fared worse than its peers, down 59.7 points, or 1.3% -- but found a foothold atop the round 4,700 level.

The CBOE Volatility Index (VIX - 15.57) popped 0.9 point, or 6.1%, to reclaim its 10-day moving average.

Indexes Closing Summary May 17

NYSE and Nasdaq Stats May 17

5 Items on Our Radar Today:

  1. June "could certainly be a meeting at which action could be taken," said Atlanta Fed President Dennis Lockhart, while saying there is a possibility of two to three rate hikes by year's end. Additionally, San Francisco Fed President John Williams said he believes the economy is "doing great," and called the June meeting a "live" one. (MarketWatch)

  2. The consumer price index (CPI) jumped 0.4% in April -- its biggest gain in over three years. Elsewhere on the economic front, housing starts rose by a slightly more-than-expected 6.6% in April to a seasonally adjusted 1.17-million-unit pace, while industrial production rose by the most since November 2014. (CNBC; MarketWatch; ABC News)

  3. This retailer is struggling to tread water after its failed merger, and analysts aren't optimistic.

  4. Option bulls are cashing in as Hertz Global Holdings Inc (NYSE:HTZ) gains.

  5. These 3 stocks have call buyers hot post-earnings.

Quarterly Earnings May 17


Unusual Options Activity May 17
Data courtesy of
Trade-Alert

Commodities:

Oil prices climbed to hit another year-to-date high, as production issues in Canada and Nigeria continued to act as a boon for black gold. At the close, June-dated crude futures were up 59 cents, or 1.2%, at $48.31 per barrel.

Gold once again ticked higher, bolstered by its safe-have status and a weakening dollar. At the close, June-dated gold futures ended at $1276.90 per ounce, up $2.87, or 0.2%.

Stay on top of overnight news & big morning movers. Sign up now for Schaeffer's Opening View

A Schaeffer's exclusive

6 Sectors for Summer

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


  
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


The Next Big Player in U.S. MJ Boom
Most pure-play marijuana stocks in the U.S. trade on the Over-the-Counter stock exchange.
Wall Street Roars Higher Amid Civil Unrest
Investors weighed a mixed bag of jobs data
AstraZeneca Stock Flat Despite COVID-19 Vaccine News
AstraZeneca saw a rise in capacity for its COVID-19 vaccine candidate
The Next Big Player in U.S. MJ Boom
Most pure-play marijuana stocks in the U.S. trade on the Over-the-Counter stock exchange.