Hawkish Fed Rattles Stocks

The release of Fed minutes unnerved investors in afternoon trading

Managing Editor
Oct 17, 2018 at 4:27 PM
facebook X logo linkedin


U.S. stocks closed lower today, as investors digested the newly released September Fed minutes -- temporarily pushing corporate earnings to the back burner. A majority of Fed officials now support a shift toward a more restrictive monetary policy, though central bankers differ over how long rates should remain high enough to constrain economic growth. In another day of volatile trading, the major equity indexes made a few forays onto positive ground, but were unable to find traction north of breakeven.

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

  • What happens when there's a  52-week low pileup?
  • 2 pharma stocks popping on analyst attention.
  • Fresh headwinds for Home Depot stock.
  • Plus, the healthcare stock hit by earnings; the catalyst behind Roku's rally; and oil slides below $70.

The Dow Jones Industrial Average (DJI - 25,706.68) gave up 91.7 points, or 0.4%, for the day. Eighteen Dow stocks closed in the black, with Goldman Sachs (GS) as the top performer, finishing up about 3%. Meanwhile, IBM (IBM) paced the 12 losers with a 7.6% post-earnings drop.

The S&P 500 Index (SPX - 2,809.21) shed 0.7 point, or 0.03%, while the Nasdaq Composite (IXIC - 7,642.70) lost 2.8 points, or 0.04%, for the day.

The Cboe Volatility Index (VIX - 17.40) today let go of 0.2 point, or 1.3%.

Closing Indexes Summary Oct 17

NYSE and Nasdaq stats oct 17

5 Items on our Radar Today

  1. Today, Canada became the second country, and first industrialized country, to legalize the recreational use of marijuana. Prime Minister Justin Trudeau had promised the recreational legalization during his campaign. (CNBC)
  2. Anonymous sources told Reuters that Amazon (AMZN) is targeting Queretaro  state in Mexico for its fourth distribution center in the country. The as-yet-unconfirmed plans reportedly involve the construction of a 1-million square foot warehouse. (Reuters)
  3.  Healthcare stock suffers post-earnings blow.
  4.  Roku rally sparked by Mexico ban reversal.  
  5.  Nucor stock looks to break earnings slump.

Corporate Earnings Oct 17

Unusual Options Activity October 17

Data courtesy of Trade-Alert

Oil Breaks Below $70 as Supplies Surge

Oil futures suffered after the weekly increase in U.S. stockpiles more than tripled analyst estimates at 6.5 million barrels. November-dated crude shed $2.17, or 3%, to settle at $69.75 per barrel. 

Gold futures closed lower as the U.S. dollar firmed, with December-dated gold settling down $3.60, or 0.3%, at $1,227.40 an ounce. The precious metal extended its decline in electronic trading after the release of the Fed meeting minutes.
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI