Fed Meeting tomorrow – Here’s what you need to know…

Original Link | RockwellTrading by Markus Heitkoetter

After a higher open, stocks were sideways in the morning. But the DOW was the exception.

Boeing (BA) took flight (pun intended) after announcing a dividend hike and massive buyback program. And a  1.1% gain in Boeing helped lead the DOW higher.

By the end of the session, both the S&P and DOW closed at new record highs.But it was the DOW leading the major indices with a 0.5% gain.

With the DOW up nicely and the NASDAQ finishing in the red, it looks like traders are moving out of tech and into financials again…something we’ve seen a few times over the last few weeks.


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Here’s where the major indices ended the day:

  • The S&P finished 0.2% higher. Up 4 points, the S&P ended at 2,664.
  • The DOW ended with a 0.5% gain. Adding 119 points, the DOW closed at 24,505.
  • The NASDAQ was down 0.2%. With a 13 point loss, the NASDAQ finished at 6,862.

Crude Oil (CL) opened higher and immediately reversed course. Down 1.5%, CL finished the day at $57.13 a barrel.

TodayCalifornia based utility Edison International (EIX) got whacked 6% after rumors that a fire at one of their facilities could have potentially been the cause of the recent Southern California wildfires. But the stock is popping in after-hours trading after the Los Angeles Fire Department stated the fire was caused by an ‘illegal cooking fire’ instead.

Tomorrow is the big Fed day!

The probability of a rate hike is almost 100% (according to the fed fund futures). So a rate hike is already priced into the market. But traders will be looking for clues into future rate hikes.

The Fed Statement is out at 2:00pm ET and the Fed Press Conference is scheduled for 2:30pm ET. In the morning we have CPI Data out at 8:30am ET followed by Crude Oil Inventories at 10:30am ET.

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