Dow Jones Industrial Average Nabs Post-Fed Win

The Trend 'Disproportionately Benefitting' Amazon

by Celeste Taylor

Published on Oct 12, 2016 at 4:30 PM

The Dow Jones Industrial Average (DJIA) explored both sides of breakeven, and spanned a triple-digit range. While declines in tech and energy shares initially weighed on stocks, the Dow began moving higher at midday -- and hit its intraday peak following the release of the minutes from the September Fed meeting. While the minutes signaled it was a "close call" last month, the central bank also suggested the economy was strong enough to handle a rate hike "relatively soon."

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

The Dow Jones Industrial Average (DJIA – 18,144.20) managed to end the day with a win, up 15.5 points, or 0.1%. Nike Inc (NYSE:NKE) led the 16 Dow winners with a gain of 1.2%, while Cisco Systems, Inc. (NASDAQ:CSCO) paced the 14 losers, finishing down 2.3%.

The S&P 500 Index (SPX – 2,139.18) also managed to finish in the black, rising 2.5 points, or 0.1%. The Nasdaq Composite (COMP – 5,239.02) slipped 7.7 points, or 0.2%.

The CBOE Volatility Index (VIX – 15.91) jumped 0.6 point, or 3.6%.

Indexes Closing Summary October 12
NYSE and Nasdaq Stats October 12

5 Items on Our Radar Today

  1. In the minutes from its September policy-setting meeting, the Federal Open Market Committee (FOMC) also pointed to "potential benefits" of letting the jobs market fall even further below their estimation of full employment. Nevertheless, several FOMC members see "near-term risks to the economic outlook as roughly balanced."  (Bloomberg)
  2. Tesla Motors Inc (NASDAQ:TSLA) announced that shareholder will vote to approve or block CEO Elon Musk's proposed TSLA/Solar City Corp (NASDAQ:SCTY) merger by November 17. (Forbes)
  3. Apple Inc. (NASDAQ:AAPL) beat this record for the first time since 2015.
  4. The insurance stock getting stomped by Medicare.
  5. The Swedish telecom stock that took a major hit on a dismal profit outlook.

Corporate Earnings October 12
Unusual Options Activity October 12

Data courtesy of Trade-Alert

Commodities:

November-dated crude slid 61 cents, or 1.2%, but managed to notch another finish above the critical $50 level, at $50.18 per barrel. Despite rampant talk about curbing the current global oversupply, the Organization of the Petroleum Exporting Countries (OPEC) announced today that September oil output had reached eight-year highs.

December-dated gold gave up $2.10, or 0.2%, to end the day at $1,253.80 per ounce, on pressure from a strengthening greenback. However, the precious metal rose back into positive territory in electronic trading, as rate-hike chatter picked up after the release of the FOMC September meeting minutes.

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