Stocks were pretty quiet today, before and after the Fed.
The major indices opened slightly higher this morning. But stocks pulled back and traded sideways until today’s Fed Statement at 2pm ET.
As expected, the Fed kept rates unchanged.
In the policy statement, the Fed dropped the word “patient” and said they will “closely monitor” information that impacts the economy and will act “appropriate”.
When asked about the possibility of being fired or demoted by the President, Fed Chair Powell said that he intends to serve out his 4-year term and that he believes the “law is clear” on the issue.
The Fed’s dot plot projection showed that 8 of the 17 voting members see a rate cut by the end of the year.
But this didn’t dampen the mood of traders, according to the CME’s FedWatch tool, traders now believe there is a 100% chance the Fed will cut rates by the end of the year.
Stocks were slightly negative before the statement, then rallied, believing that today’s comments opened the door to future rate cuts. There was another small push higher after the Press Conference. But all things considered, it was a pretty quiet day.
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Here’s where the major indices ended the day:
- The S&P finished with a 0.3% gain. Up 9 points, the S&P ended at 2,926.
- The DOW ended higher by 0.2%. Adding 38 points, the DOW closed at 26,504.
- The NASDAQ was up 0.4%. With a 33 point gain, the NASDAQ finished at 7,987.
Crude Oil (CL) flirted with the $54 mark for most of the day before finishing slightly lower. With a 0.3% loss, CL ended at $53.93 a barrel.
In earnings news, Adobe Systems (ADBE) jumped 5.2% after better than expected numbers.
Shopify Inc (SHOP) was a big mover today, up 7.5% and hitting a record high after revealing plans to build a distribution network that will take on retailers like Amazon (AMZN).
Slack Technologies is in the headlines for an unconventional stock offering that will take place tomorrow. The stock will begin trading on the New York Stock Exchange under the symbol WORK. But unlike the traditional initial public offering (IPO) that we’ve seen from companies like Lyft and Uber (where there is an underwriter and new shares are issued), Slack will have a direct listing, where existing private shares can now be traded publicly.
Here is the economic calendar for the week:
Real Time Economic Calendar provided by Investing.com.
Source: RockwellTrading by Markus Heitkoetter | Original Link