Fed Signals No Interest Rate Hike, US Stock Higher
$TWTR, $USO, $OIL, $GLD, $VXX, $SPY, $DIA, $QQQ
US stocks rose Wednesday as Wall Street assessed the FOMC statement released in the afternoon.
The DJIA added 121.12 pts, or 0.69%, to 17,751.39.
The S&P 500 gained 15.32 pts, or 0.73% , to 2,108.57.
The NAS 1oo Index rose 22.53 pts, or 0.44%, to 5,111.73.
The CBOE Volatility Index (VIX) decreased 6.99% to end at 12.50 Wednesday.
According to the Fed statement, information received since the FOMC met in June indicates that economic activity has been expanding moderately in recent months.
To support continued progress toward maximum employment and price stability, the Fed reaffirmed its view that the current Zero to 1/4% target range for the federal funds rate is sill appropriate.
In determining how long to maintain this target range: the Fed will assess progress, both realized and expected toward its objectives of maximum employment and 2% inflation.
On the economic front
US pending home sales fell in June but remained near May’s marks, which was the highest in more than 9 years, according to the National Association of Realtors.
The Pending Home Sales Index fell 1.8% to 110.3 in June, 8.2% above June 2014 reading.
In corporate news
Shares of Twitter (NYSE:TWTR) dove 14.50% to 31.24 Wednesday following the release of its Quarterly results, as tepid user growth and ongoing uncertainty about its leadership weighed on participant sentiment.
In other markets
WTI Crude Oil prices increased as a government report showed stockpiles unexpectedly fell last week.
The WTI Crude for Sept delivery moved up 81 cents to settle at 48.79 bbl on the New York Merc, while Brent Crude for Sept delivery increased 8 cents to close at 53.38 bbl on the London ICE Future Exchange.
.DXY increased as the newly-released Fed statement showed optimism on the country’s labor market, indicating an interest-rate hike by the year-end or into Y 2016.
Gold futures on the COMEX division of the New York Merc fell as the Buck showed strength ahead of the press conference about the Fed’s interest rates.
The most active Gold contract for Aug delivery lost 3.60, or 0.33%, to settle at 1,092.60 oz.
Stay tuned…
HeffX-LTN
Paul Ebeling
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