Dow Notches 9th Straight Win After Fed Statement

The Fed will begin unwinding its balance sheet next month

Josh Selway
Sep 20, 2017 at 4:27 PM
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Stocks initially retreated following the latest Fed policy announcement, but the Dow Jones Industrial Average (DJIA) and S&P 500 Index (SPX) ultimately bounced back to hit fresh record highs. The central bank said it'll begin unwinding its gigantic balance sheet next month, and that there's a chance for another rate hike this year. In response, bank stocks rallied, with Dow component JPMorgan Chase hitting an all-time high, helping the Dow to its ninth straight win. While the tech-heavy Nasdaq Composite (COMP) struggled with Apple stock, rising oil prices helped lift the energy sector, with crude futures settling atop $50 per barrel. 

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

  • 2 foreign ETFs to watch in the fourth quarter. 
  • The Dow stock downgraded on valuation concerns. 
  • Apple options volume hit fever pitch. 
  • Plus, options traders jump on Fitbit; 2 blue chips for call buyers; and Adobe's analyst attention. 

The Dow Jones Industrial Average (DJIA - 22,412.59) grabbed a seventh consecutive record close, after adding 41.8 points, or 0.2%. McDonald's stock paced the 21 Dow advancers by adding 1.6%, while Apple was the worst off of the nine losers, falling 1.7%. The DJIA peaked at 22,413.26 today.

The S&P 500 Index (SPX - 2,508.24) extended its streak of record closes to four, finishing up 1.6 points, or 0.1%, and just off an intraday best. The Nasdaq Composite (COMP - 6,456.04), however, fell 5.3 points, or 0.1%. 
 
The CBOE Volatility Index (VIX - 9.78) fell 0.4 point, or 3.9%, for its first sub-10 close since Aug. 7. 

Closing INdexes Summary September 20
NYSEandNasdaq September 20

5 Items on Our Radar Today

  1. Comcast is throwing its hat in the esports ring. The company has acquired the rights to the Philadelphia team in the Overwatch esports league, -- where professional gamers play video games for an audience -- and is now searching for a coach and players. (Bloomberg) 
  2. Hurricane Maria -- now a Category 3 storm -- has knocked out power on the entire island of Puerto Rico. Maria is the second major hurricane to hit the Caribbean in September, with many islands already devastated by Irma. (CNBC)
  3. How options traders reacted to Apple Watch rival Fitbit stock
  4. Buy calls on these 2 blue chips. 
  5. Why positive analyst attention failed to lift Adobe. 

Corporate Earnings Chart September 20
Unusual Options Activity September 20
Data courtesy of Trade-Alert

Commodities

Oil prices rallied today, topping the closely watched $50 level for their highest close in roughly four months. October-dated crude futures rose 93 cents, or 1.9%, to end at $50.41 per barrel, despite a bigger-than-expected increase in weekly crude inventories. 

Gold snapped a four-session losing streak today, but turned lower in after-hours trading, following the Fed announcement. Gold dated for December delivery added $5.80, or 0.4%, to close at $1,316.40 per ounce. 


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