The central bank said it will begin economic tapering later this month
Things looked shaky toward the end of the session, but the major indexes ended up adding to their record-streak after the U.S. Federal Reserve wrapped up its two-day monetary policy meeting. The central bank signaled it will begin to taper the pandemic-induced bond-buying program later this month, and acknowledged the speed in which prices have risen in the face of mounting inflation. They also insisted that the price hikes are merely "transitory" -- meaning the Fed is unlikely to raise interest rates after the bond taper ends next year.
For a third-straight day, the Dow, S&P 500, and Nasdaq each scored fresh intraday and closing highs. The blue-chip index shook off earlier losses and added around 105 points, while the Nasdaq nabbed its fifth-straight closing peak. Elsewhere, the small-cap Russell 2000 Index (RUT) also turned in an intraday high and all-time high close.
Continue reading for more on today's market, including:
- Bed, Bath & Beyond and Kroger announce an unexpected partnership.
- T-Mobile stock pops on a beat-and-raise.
- Plus, options traders target Pfizer stock; more on the S&P 500's buy signal; and everything on Zillow's corporate shakeup.
The Dow Jones Average (DJI - 36,157.58) added 105 points or 0.3% for the day. Walgreen Boots Alliance (WBA) tacked on 3.1% to lead the list of Dow winners, and Caterpillar (CAT) fell 1.7% to pace the laggards
The S&P 500 Index (SPX - 4,660.57) added 29.9 points, or 0.7% for the day, while the Nasdaq Composite (IXIC - 15,811.58) tacked on 162 points, or 1% for the day.
Lastly, the Cboe Volatility Index (VIX - 15.10) gained 0.9 point, or 5.8% for the day.
- The proposed four weeks of paid leave is being put back into the Build Back Better legislation, giving Democrats and advocates for paid family leave a victory after a contentious election day. (CNBC)
- An investor group managing around $4.5 trillion warned the world's top four audit firms that they will vote to stop the firms from working with company's they invest in if climate risk is not integrated into audits. (Reuters)
- Pfizer stock's options pits explode after CDC endorsement.
- Schaeffer's Senior Quantitative Analyst Rocky White a potential SPX buy signal.
- Zillow leaves home-flipping game, losing big in the third quarter.
Oil Prices Continue to Move Lower
Oil prices tumbled today, after U.S. crude rose more than expected over the last week. U.S. President Joe Biden, speaking at the climate summit in Glasgow, blamed the recent spike in oil prices on the refusal of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) to produce more crude. For the day, December-dated crude shed $3.05, or 3.6% to settle at $80.86 a barrel.
Gold prices fell as well, taking a dive after the Fed's decision to begin tapering pandemic-induced stimulus as inflation continues to rise. An increase in employment from ADP jobs data also contributed to the commodity's fall. As a result, December-dated gold fell $25.50 or, 1.4%, to settle at $1,763.90.