Dow Jones Industrial Average Today Rallies After No Fed Rate Hike

The Dow Jones Industrial Average pushed higher after the U.S. Federal Reserve announced plans to keep interest rates unchanged in September. The news was hardly surprising, as the odds of a rate hike sat at just 15% before the announcement.

According to reports, it was a very divisive FOMC meeting over the last two days. Fed Chair Janet Yellen issued a statement, but three members of the Fed dissented on the central bank's decision. Kansas City Fed President Esther George, Cleveland Fed President Loretta Mester, and Boston Fed President Eric Rosengren all said they favored an interest rate hike.

Let's look at the final numbers on Wednesday for the DowS&P 500, andNasdaq:

Dow Jones: 18,293.50; 163.54; 0.90%                                

S&P 500: 2,163.10; 23.34; 1.09%   

Nasdaq: 5,295.18; 53.83; 1.03%

Here's a look at today's most important market events and stocks, plus a preview of Thursday's economic calendar.

DJIA Today: Fed Keeps Interest Rates Unchanged; Bank of Japan Won't Hike Rates

The Dow Jones gained 163 points after the Federal Reserve voted to keep interest rates unchanged this month, raising expectations that the Fed will increase rates in December. Fed Chair Janet Yellen said that the case for a rate hike has improved. Yellen said that economic growth has picked up and that the labor markets have improved. However, Yellen has raised some concerns about productivity in the economy.

This morning, the Bank of Japan adopted a "yield curve control," its latest experiment in monetary policy to bolster the nation's economy. The central bank will purchase long-term government bonds, a plan that will hold the 10-year bond yield near 0%. The central bank will also keep its deposit rate in negative territory and says it will not hesitate to boost easing efforts in order to spur the country's stagnant economy.

Negative interest rates are killing savers all around the world. 

Oil prices pressed higher after a surprise downturn in U.S. crude inventory levels. The price of crude oil is also soaring thanks to a service workers strike in Norway, which has endangered North Sea output. The WTI crude oil price today added 2.5%. Meanwhile, the Brent crude oil price gained 2.0%.

Energy stocks pressed higher thanks to increasing crude prices. Chevron Corp. (NYSE: CVX) added 1.1%, while Exxon Mobil Corp. (NYSE: XOM) added 0.4%. Today's biggest winner in the sector was Cloud Peak Energy Inc. (NYSE: CLD), which rallied more than 16%.

But the big news that slipped under the radar was an epic Twitter Inc. (NYSE:TWTR) rant by Larry Summers, former National Economic Council director and undersecretary for International Affairs during President Bill Clinton's tenure. Summers directed his ire directly at the Federal Reserve and argued that the central bank shouldn't raise interest rates for myriad reasons. 

Top Stock Market News Today, Sept. 21, 2016

  • Shares of Target Corp. (NYSE: TGT) ticked higher after the firm announced a $5 billion buyback program and announced its quarterly dividend will remain the same.
  • In earnings news, shares of Adobe Systems Inc. (Nasdaq: ADBE) rallied more than 6% after the company topped Wall Street quarterly earnings expectations. The software giant received string of upgrades from several brokerages. Meanwhile, shares of FedEx Corp. (NYSE: FDX) added more than 5.5% after the firm reported a strong boost in quarterly profits. The shipping giant also lifted its full-year outlook.
  • Shares of Chipotle Mexican Grill Inc. (NYSE: CMG) slid 0.3% on news that Goldman Sachs Group Inc. (NYSE: GS) has slashed its price target from $445 to $395. The bank said that it doesn't see much benefit from its loyalty program, which targets high school and college-aged consumers and ends this month. The news comes on the same day that the company's co-founder Steve Ells announced that the company has dramatically improved its food safety, one year after the firm had outbreaks of E. coli, norovirus, and salmonella.

Disclosure: None.

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Chee Hin Teh 7 years ago Member's comment

Thanks for sharing