Dow Rides Fed Rate Hike to Fourth Straight Record Close
The Dow Jones Industrial Average (DJIA) secured a fourth straight record close, after the Fed officially raised interest rates by a quarter point and lifted its economic outlook for 2018. The widely expected move also came with a forecast for three more rate hikes in 2018 -- unchanged from the central bank's previous statement. Outgoing Fed Chair Janet Yellen cited tax reform optimism as a driver behind the policymakers' hiked gross domestic product (GDP) forecast for next year, and she even weighed in on bitcoin, saying "it is not a stable source of value."
In fact, markets today were optimistic over reports of a tentative agreement on a GOP tax plan, and President Trump's comments that he would support a bill with 21% corporate tax rate. However, while the Nasdaq Composite (IXIC) followed the Dow higher, a late-day bank selloff sent the S&P 500 Index (SPX) into the red, snapping a four-day winning streak.
Continue reading for more on today's market, including:
2 oil stocks to sell now, if past is prologue.Buy these blue-chip stocks after the Fed rate hike.The Apple investment that dropped this tech stock.Plus, behind the big silver abandonment; Finisar's big day; and NKE's new partnership.The Dow Jones Industrial Average (DJIA - 24,585.43) finished 80.6 points, or 0.3%, higher, after notching an intraday high of 24,666.02. Caterpillar (CAT) led 19 Dow stocks higher with its 3.6% win, while IBM (IBM) paced the 11 decliners with its 1.8% loss.
The S&P 500 Index (SPX - 2,662.85) finished 1.3 points lower, after topping out at an all-time peak of 2,671.88. The Nasdaq Composite (IXIC - 6,875.80) added 13.5 points, or 0.2%.
The CBOE Volatility Index (VIX - 10.18) added 0.3 point, or 2.6%.
5 Items on Our Radar Today
Target (TGT) has agreed to buy Shipt Inc, a grocery-delivery startup, for $550 million in cash. It is the second move this year indicative of efforts from Target to challenge Amazon.com (AMZN) and Wal Mart (WMT) in logistics operations and same-day shipping. The deal will allow about half of Target stores to offer same-day delivery by next summer. (Bloomberg)Lost in the shuffle amid the interest rate news, the consumer price index (CPI) climbed 0.4% in November -- in line with expectations. Higher gas prices can be attributed to the rise. Core inflation, which removes energy and food prices, rose by a smaller-than-expected 0.1%. (MarketWatch) Breaking down the best time to buy oversold silver.Options bulls are flocking to surging Finisar stock.Analysts are lagging behindNike stock.There are no notable earnings to report.
Data courtesy of Trade-Alert
Commodities
Crude slated for January delivery fell 54 cents, or 1%, to close at $56.60 per barrel, after U.S. crude output grew to record highs and gasoline inventories rose by more than expected last week.
After flirting with five-month lows earlier, February-dated gold futures gained $6.90, or0.6%, to settle at $1,248.60 an ounce, snapping a five-day losing streak. The Fed's decision to raise interest rates moved the safe-haven asset even higher in electronic trading.