Stocks Close Mixed After Fed Raises Rates, Sticks To Plans For More

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Stocks weakened into the close after the Federal Reserve made its expected interest-rate increase Wednesday.

[ibd-display-video id=3021370 width=50 float=left autostart=true] The Nasdaq composite closed 0.2% higher and the Dow Jones industrial average ended with a 0.3% gain, good for another record close. But the S&P 500 fell a fraction as financials lagged noticeably. The small-cap Russell 2000 led with a 0.6% leap at the closing bell .

Volume rose, according to preliminary figures.

The Fed raised the fed funds rate by a quarter point and held to a projection of three more rate hikes in 2018. The Fed, factoring in tax cuts, boosted its projection of 2018 economic growth to 2.5% from September's 2.1% forecast but did not increase inflation estimates.

Meanwhile, congressional negotiators reached a compromise on a massive tax bill that includes a reduction in corporate tax rates to 21% from 35%.

Banks have been rising on expectations of rising rates, but they lagged in Wednesday's market , perhaps a sell-on-the-news reaction.

State Street ( STT ) rose above the 100.09 buy point of a cup-shaped base in average volume. But the Boston-based investment management firm closed slightly below that entry.

Gold miners were one of Wednesday's top-performing industry groups as gold, silver and other metals climbed. Freeport McMoRan ( FCX ) is following through on a breakout from a double-bottom buy point at 15.69. The copper miner has surged for six straight days while copper prices rally.

Chile's Codelco, the world's largest copper producer, is headed to contract talks with 32 labor unions, which raises the possibility of work stoppages, Bloomberg reported. Supplies are constrained, too.

With brick-and-mortar retailers making a rebound, a few shopping-center companies reached buy points Wednesday.

Agree Realty ( ADC ), a real estate investment trust that owns retail space for restaurants, auto parts stores, gyms, banks and other shops, cleared the 51.38 buy point of a choppy flat base. Volume was only average, however.

It wasn't quite a breakout, but Simon Property Group ( SPG ), the nation's largest mall operator, tried to clear the 167.92 buy point of a flat base deep within a larger consolidation.

The SPDR Retail ( XRT ) ETF rose more than 1% and is near the highest level since the start of the year. Consumer electronics, home furnishings and other retail groups led the market.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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