Wall Street ends mixed as FOMC remains on track for a December hike
- Dow Jones and S&P close higher, Nasdaq drops.
- Rising crude oil prices boost the energy sector.
Major equity indexes in the United States finished the day mixed despite the Fed's optimistic view on the economy and the robust performance of the energy sector.
On Wednesday, crude oil prices extended their gains, pushing the barrel of West Texas Intermediate to its highest level since February near the $55 mark. The S&P 500 Energy Index (SPNY) added 1.1%. On the other hand, today's FOMC statement ramped up the expectations for a 25 bps rate hike, weighing on the rate-sensitive the S&P 500 Utilities Index (SPLRCU), which ended the day 0.6% lower.
"On top of confirming the market’s expectation that it would not hike rates at this meeting, the Fed also made some fairly favorable comments about the economy. That gave a little boost of confidence to investors,” Alan Lancz, president of investment advisory firm Alan B. Lancz & Associates Inc in Toledo, Ohio, told Reuters.
The Dow Jones Industrial Average added 57.77 points, or 0.25%, to 23,435.01, the S&P 500 rose 4.1 points, or 0.16%, to 2,579.36 and the Nasdaq Composite lost 11.14 points, or 0.17%, to 6,716.53.
DJIA technical outlook
Valeria Bednarik, Chief Analyst at FXStreet, writes, "the DJIA peaked intraday at 23,516.10 and retains its positive stance according to the daily chart, as the index continues developing above sharply bullish moving averages, while technical indicators hold within overbought territory, with the RSI regaining the upside, now at 74. Shorter term, and according to the 4 hours chart, the index presents a neutral-to-positive stance, as it's barely holding above a horizontal 20 SMA while the RSI is flat around its mid-line, but the Momentum indicator bounced from its 100 level, maintaining a bullish slope."
According to the analyst, supports could be seen at 23,333, 23,281 and 23,238 while resistances align at 23,447, 23,484 and 23,516.
Headlines from the NA session
- Trump to tap Fed’s Jerome Powell for Fed Chairman - WSJ
- Market wrap: US dollar was volatile ahead of 'non-event' FOMC - Westpac
- Wages return to trend growth as payrolls rebound - Nomura
- CME Group FedWatch's Dec hike probability inched higher to 97.7% post-FOMC
- US Construction Spending: Longer-run trends show only a slight hint of improvement - Wells Fargo
- The Fed: support for a December rate hike, who will be next Chair? - ING
- FOMC statements: Comparison between September and November
- US: Private sector employment increased by 235,000 jobs from Sep to Oct - ADP
- Markit: Strong improvement in operating conditions across the US manufacturing sector
- US: October PMI registered 58.7, a decrease of 2.1 points from September reading - ISM