Fed Chair Jerome Powell said low inflation was only "transitory"
Fed Chair Jerome Powell's comments on a "transitory" period of low inflation deflated hopes for a potential rate cut on the horizon. Against this backdrop, the major stock market indexes turned lower, erasing earlier gains stemming from solid Apple (AAPL) earnings. By the close, the Dow, S&P 500, and Nasdaq were in the red, though the SPX touched a new record high before its reversal.
Continue reading for more on today's market, including:
- 3 reasons to grab calls on this insurance stock.
- This chip stock attracted bullish analyst attention after earnings.
- 2 drug stocks that made massive moves today.
- Plus, ULTA stock could heat up; the China stock set for a major breakout; and 2 blue chips to buy now.
The Dow Jones Industrial Average (DJI - 26,430.14) lost 162.8 points, or 0.6%, in today's trading. Apple was the best of the six Dow gainers, adding 4.9%, while on the flip side, Home Depot (HD) was the worst of the 24 losers with a 2.4% dip.
The S&P 500 Index (SPX - 2,923.73) fell 22.1 points, or 0.8%, after touching a record best 2,954.13 in intraday trading. The Nasdaq Composite (IXIC - 8,049.64) ended 45.8 points, or 0.6%, lower.
The Cboe Volatility Index (VIX - 14.80) was 1.7 points, or 12.8%, higher, for its highest close in over a month.
5 Items on our Radar Today
- Hulu announced that it gained over two times the number of subscribers as Netflix (NFLX) in its first quarter. While Netflix's user base still overshadows Hulu by a long shot, the smaller streaming service added 3.8 million subscribers in 2019, compared to Netflix, which posted a 1.74 million increase in its first quarter. (CNBC)
- A new gun bill passed in Florida today will let teachers legally arm themselves in the classroom. The bill was in response to a recent Parkland, Fla., high school shooting, and passed with a 65-to-47 vote in Florida's House of Representatives after a lengthy debate. (Reuters)
- How red-hot ULTA stock could make serious moves this summer.
- The China stock signaling a huge breakout.
- 2 blue chips flashing "buy" signals right now.
Data courtesy of Trade-Alert
Oil Drops on Inventories Glut
Oil erased yesterday's gains as U.S. crude inventories surged to 19-month highs. Political tensions in Venezuela, as well as the U.S. eliminating Iranian oil sanction waivers, helped dilute some of the losses, however. June-dated crude futures fell 31 cents, or 0.5%, to close at $63.60 a barrel.
Gold futures ended in the red today, with June-dated gold ending $1.50, or 0.1%, lower at $1,284.20 an ounce. After the Fed announcement, the contract deepened its losses in electronic trading.