Hawkish Fed Weighs on Dow Jones Industrial Average

Is This Red-Hot Sector About to Cool Off?

by Kirra Fedyszyn

Published on Aug 16, 2016 at 4:26 PM
Updated on Jun 24, 2020 at 10:16 AM

The Dow Jones Industrial Average (DJIA) spent the whole session in the red -- pulling back from Monday's record high -- as stocks reacted to relatively hawkish Fed talk. The latest round of economic data failed to set a positive tone, too, even as crude oil prices rallied to a fresh monthly high. The Fed's monetary policy will continue to be front and center tomorrow, with the minutes from July's Federal Open Market Committee (FOMC) meeting due in the afternoon, and St. Louis Fed President James Bullard set to take the mic. 


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

The Dow Jones Industrial Average (DJIA - 18,552.02) shed 84 points, or 0.5%, with Johnson & Johnson (NYSE:JNJ) leading 24 of the 30 Dow components lower on a 1.6% loss. Intel Corporation (NASDAQ:INTC) led just six winners, adding 0.9% for the day.

The S&P 500 Index (SPX - 2,178.15) gave up 12 points, or 0.6%, and the Nasdaq Composite (COMP - 5,227.60) dropped 34.4 point, or 0.7%.

The CBOE Volatility Index (VIX - 12.64) added 0.8 point, or 7%. 

indexes closing summary august 16

nyse and nasdaq stats august 16

5 Items on Our Radar Today:

  1. Ford Motor Company (NYSE:F) said it expects to have fully self-driving vehicles on the roads within five years. The company said the autonomous car will be used by ride-sharing and ride-hailing firms, and will not include pedals or a steering wheel. (CNBC)
  2. Speaking to the Rotary Club in Knoxville, Tennessee, Atlanta Fed President Dennis Lockhart said that he is "not prepared to rule out at least one rate hike before year's end." This echoes a similar stance taken by New York Fed President William Dudley earlier, who said a September rate hike is "possible." (MarketWatch; CNBC)
  3. Hedge funds adjusted their appetites for Apple Inc. (NASDAQ:AAPL).
  4. The latest insurance firm to pull back on its Obamacare coverage.
  5. Why this food stock plunged.


quarterly earnings august 16

unusual options activity august 16
Data courtesy of
Trade-Alert

Commodities:

September-dated crude oil added 84 cents, or 1.8%, to close at $46.58 per barrel -- its highest settlement since July 6. Oil prices enjoyed a fourth straight day of gains, as militant-related crude output outages in Nigeria overshadowed speculation that Iran may not participate in next month's meeting among Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC nations.

Growing uncertainty over the Fed's interest rate timeline weighed on the U.S. dollar, leading gold to a higher finish. The December contract for gold climbed $9.40, or 0.7%, to $1,356.90 an ounce.

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