Markets were incredibly volatile Wednesday,
eventually closing significantly lower
. Equities shot down after the Fed's minutes were released, and
quickly recovered before tanking to end the day.
The Dow Jones Industrial Average closed down 105.44 points, or
0.7 percent to 14,897.55.
The S&P 500 closed down 9.55 points, or 0.58 percent at
The Nasdaq closed down 13.8 points, or 0.38 percent at
Equity, commodity, and bond markets responded strongly to the
minutes initial release at 2:00 pm. Equities and gold spike down
with the Dow testing 14,900 sending treasuries significantly
higher. Investors seem most concerned over tapering uncertainty
and few defendants of dovish policy.
Existing home sale data came out at 10:00 am Wednesday
morning. Existing home sales grew 6.5 percent versus the
estimated 1.6 percent. 5.39 million homes were sold, compared to
the previous month's 5.08 million.
another hit today as delivery date nears
and traders roll their contracts forward to future months. WTI
was down 1.11 percent to $103.94 with Brent down 0.25 to $109.88.
This is an especially large gap. Natural gas gained value today,
jumping up 0.58 percent nearing the close.
There was little change in the metals market with gold and
silver down 0.15 percent, and silver up 0.12 percent,
respectively. Copper futures were down almost half a percent
heading into the equity market close to $332.40 per pound.
The greenback was especially volatile today with the release
of the FOMC minutes (just like everything else). The PowerShares
DB US Dollar Index (NYSE:
) that tracks the strength of the dollar versus a basket of
currencies was up 0.46 percent nearing 4 pm.
EUR/USD pair fell 0.42 percent today
to 1.3361 with the USD/JPY couple up 0.66 percent to 97.91. The
other big mover of the day was the mexican peso which tumbled
dramatically. The USD/MXN pair was up 1.89 percent to 13.2203
heading into Wednesday's close.
Volatility and Volume
The CBOE Volatility Index (VIX) rose a little less than four
percent on the session. The closely watched barometer of
volatility expectations finished the day at 15.48. This is the
highest its been in over a month. Volume remained lighter than
usual on Wednesday. Around 27 million SPDR S&P 500 ETF (NYSE:
) shares traded hands compared to a 3-month daily average over
100 million shares.
) moved up
33.48 percent to $36.04 on positive
top-line results of Phase II proof-of-concept trial of
) rose, shooting up
3.93 percent to $45.81 after
reporting strong earnings. Second quarter earnings were up 26
percent and the company raised its forecast.Trina Solar (NYSE:
) traded up, gaining 14.71 percent to $8.97 after Cowen &
Company upgraded the stock from Market Perform to
) slipped 15.29 percent to $14.27 after the company reported
earnings.American Eagle Outfitters (NYSE:
) picked view for the quarter. Shares tumbled 9.89 percent to
) was down 3.16 percent to $65.50 in its second-quarter
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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