"The Fed's interest-rate decision got the headlines, but the
market was firmly in the red before the news even came out,"
observed Schaeffer's Senior Technical Strategist Ryan Detrick, CMT.
"With the European Central Bank still on tap for tomorrow and the
monthly jobs number due Friday, it seemed like today was a good day
for some traders to book profits." The
Dow Jones Industrial Average (DJI)
headed lower out of the gate and continued to sink as the day
progressed, ultimately closing off 139 points.
Continue reading for more on today's market, including
- The market takes a tumble, the Fed holds pat, and the bulls
line up ahead of LinkedIn (
The bulls were banished to the sidelines today, as the
Dow Jones Industrial Average (DJI)
settled just off its intraday low. At the closing bell, the
blue-chip index was off 139 points, or 0.9%, at 14,700.95, just
above its 10-day moving average. Just five Dow components ended the
session in positive territory. Leading the advancing minority was
Walt Disney (
), which gained 0.6%. Bringing up the rear were Verizon
) and Merck (MRK), both of which dropped 2.8%.
S&P 500 Index (SPX)
was also sharply in the red, shedding 14.9 points, or 0.9%, to
1,582.70, to end atop support at the 1,575 level. The technology
sector struggled as well, as the
Nasdaq Composite (COMP)
gave back 29.7 points, or 0.9%, to close at 3,299.13 after tagging
another new 12-year peak of 3,330.02 shortly after the open.
It was a strong day for the
CBOE Market Volatility Index (VIX),
which surged 1 point, or 7.2%, to settle the session at $14.49.
This put the index back atop its 10-day moving average for the
first time since April 19.
A Trader's Take
"Small-cap stocks were crushed today, down more than 2%," noted
Detrick. "Remember that the Russell 2000 Index (RUT) never made a
new high like its peers, and now it is down 3% from its March 15
peak of $954. This isn't a huge sell signal, but potentially a
3 Things to Know About Today's Market
- As widely expected, the Federal Open Market Committee elected
to leave interest rates unchanged, and
keep its $85-billion-per-month bond buyback
in place. The one wild card in the statement was the declaration
that future asset purchases could be determined by labor-market
changes or inflation.
- ADP reported that
hiring in the private sector
expanded by just 119,000 in April. This reading, which was well
south of expectations, was the lowest since last September.
(Los Angeles Times)
- Ford Motor (F) reported an
18% jump in vehicle sales for April
, while Chrysler and General Motors (GM) each saw sales rise 11%
last month. The top-selling car model for Ford was the Fusion,
while GM saw notable strength in the Cadillac line.
5 Stocks We Were Watching Today
- Fans of LinkedIn Corp (
) expect the stock to enjoy another
- Short-term bears see Apple Inc. (AAPL) heading
back below the $400 level
- Amazon.com (AMZN)
bears used weekly options
to place short-term bets.
- Call buyers bet big on a
sharp move higher
in Micron Technology (MU) shares.
- The long-term picture for Advanced Micro Devices (AMD)
, according to one large-scale put buyer.
For a look at today's options movers and commodities
activity, head to page 2.
Oil futures were in the red again today, driven south by
discouraging economic reports out of the U.S. and China. Adding
insult to injury, supplies grew by more than expected during the
past week. By the close, June crude futures were sitting at $91.03
per barrel, down $2.43, or 2.6%, on the day.
June-dated gold also fell, settling at $1,446.20 an ounce, down
$25.90, or 1.8% -- a one-week low for the contract. The precious
metal weakened against a backdrop of slumping payroll additions and
ahead of the Fed statement.
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