Dow Jones Industrial Average Hits Record High After Fed Rate Hike

2 Tech Stocks With Cheap Options

Jun 14, 2017 at 4:30 PM
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The Dow Jones Industrial Average (DJIA) nabbed a record high for the second day in a row, ending near a session high after the Fed policy statement. As expected, the Fed lifted interest rates for the second time this year, and in a post-meeting press conference, Fed Chair Janet Yellen said the economy is on the path to achieving the current 2% inflation target. On the flip side, energy stocks plummeted along with crude oil futures and weighed on the S&P 500 Index (SPX), and an afternoon decline in tech stocks dragged the Nasdaq Composite (COMP) into the red for the third session in four.

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

  • tech stocks with cheap options.
  • How oil bears cashed in on crude's decline.
  • Options traders are eyeing a bigger-than-usual earnings move for Kroger stock tomorrow.
  • Plus, this rare tech signal; the airline stock that stumbled on a downgrade; and 2 semiconductor stocks in analysts' bullish crosshairs.

The Dow Jones Industrial Average (DJIA - 21,374.56) briefly lost steam after the Fed announcement, but shot higher in the final minutes of trading, touching an all-time high of 21,391.97. By the close, the Dow was up 46.1 points, or 0.2%. Home Depot stock led the 18 advancing Dow components, gaining 1.8%, while Chevron's 1.4% loss paced the 12 Dow laggards.

The S&P 500 Index (SPX - 2,437.92) moved lower after the Fed announcement, ending on a loss of 2.4 points, or 0.1%. The Nasdaq Composite (COMP - 6,194.89) gave up an early lead amid an afternoon plunge in tech stocks, surrendering 25.5 points, or 0.4%.

The CBOE Volatility Index (VIX - 10.64) explored a range of 1.25 points, but ultimately ended north of breakeven, up 0.2 point, or 2.1%.

closing indexes summary june 14
nyse and nasdaq stats june 14

5 Items on Our Radar Today:
  1. U.S. retail sales dropped 0.3% in May, the biggest decline in 16 months. This followed a 0.4% increase in April, indicating caution among consumers. The data also showed department store purchases falling by the most since July 2016.  (Bloomberg)
  2. General Motors has decided to extend the shutdown of some of its factories, amid lower sales and higher inventories. While this is a normal practice for automakers, GM's increased rate of production has created higher-than-expected levels of inventory, prompting an extension of the shutdowns. (CNBC)
  3. This rare Nasdaq-100 signal could point to near-term underperformance in the tech sector
  4. These 2 outperforming semiconductor stocks failed to capitalize on bullish analyst attention.
  5. This airline stock plunged after getting hit with a downgrade and steep price-target cut.

corporate earnings june 14
unusual options activity june 14
Data courtesy of Trade-Alert

Commodities

Oil prices sank, after the Energy Information Administration (EIA) reported a lower-than-expected decline in crude supplies. Rising gasoline inventories contributed to black gold's fall. By the close, July-dated crude futures fell $1.73, or 3.7%, to $44.73 per barrel -- the lowest settlement since Nov. 14.

Gold gained for the first time in six sessions, as the dollar cooled ahead of the Fed's rate decision. August-dated gold futures settled up $7.30, or 0.6%, at $1,275.90 an ounce. Gold futures turned tail after the expected rate hike and Yellen's press conference, though, last seen trading down $7.20, or 0.6%, at $1,261.40 an ounce.

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