U.S. markets showed opening strength on Wednesday and ahead of the Fed announcement on interest rates. As expected, the FOMC raised the funds rate target by quarter-point with the major indexes losing steam immediately following the news.
The major indexes made higher highs from the previous session ahead of the Fed news but the nasty finish was disappointing on the 2%-3% intraday swings. Volatility held key levels of resistance for a 3rd-straight session while closing lower and remains a very slight bullish signal.
The Nasdaq tanked 2.2% despite the intraday run to 6,868. Lower resistance at 6,850-6,900 was breached but held before the free-fall to 6,586 and fresh 52-week low.
The Russell 2000 plummeted 2% after failing major resistance at the 1,400 level just ahead of the Fed news. The pullback to 1,344 and mew 52-week low gets longer-term support at 1,325-1,320 in play.
The Dow sank 1.5% after testing a midday high of 24,057. Upper resistance at 23,800-24,000 was cleared before the 895-point drop to 23,162.
The S&P 500 also stumbled 1.5% despite the intraday push to 2,585. Upper and major resistance at 2,575-2,600 held before the tumble to 2,488 with the index rounding out the fresh 52-week lows.
There was no sector strength for the 3rd-straight session.
Communication Services led sector laggards after tanking 2.1%. Consumer Discretionary and Technology fell 2%.
Best Buy (BBY) upgraded to Neutral, risks priced in, says MoffettNathanson
Medtronic (MDT) upgraded to Overweight from Neutral at JPMorgan
General Electric (GE) upgraded to Buy from Hold at Vertical Research
Alkermes (ALKS) downgraded to Sell from Neutral at Goldman Sachs
Micron (MU) downgraded to Hold from Buy at Needham
Under Armour (UA, UAA) downgraded to Underweight from Neutral at Atlantic Equities
Thursday’s earnings announcements (EST):
Before the open: Accenture (ACN), Apogee Enterprises (APOG), Blackberry (BB), Carnival (CCL), Conagra Brands (CAG), Neogen (NEOG), Sanderson Farms (SAFM), Scholastic (SCHL), Walgreens Boots Alliance (WBA)
After the close: CalAmp (CAMP), Cintas (CTAS), Naked Brand Group (NAKD), Nike (NKE), RF Industries (RFIL)
UPCOMING ECONOMIC NEWS
Thursday’s Economic Reports (EST):
Jobless Claims – 8:30am
Philadelphia Fed Business Outlook Survey –
Leading Indicators – 10:00am
METALS / OIL
Gold closed at $1,256.40 an ounce, up $2.80
Silver settled at $14.82 an ounce, up $0.12
Copper finished at $2.72 a pound, up $0.06
Crude Oil is at $47.96 a barrel, up $1.93
Bitcoin Investment Trust (GBTC) ended at $4.31 up $0.16
I hope this helps you prepare for the trading day. Make it a great one!