Markus Heitkoetter
Rockwell Trading
Today was all about the Fed.
Stocks traded in a narrow range until 2pm ET when the Fed Statement was released.
And as expected, the Fed cut rates a quarter point. Seven members voted for a cut, while one member wanted a bigger cut, and two members wanted to keep rates the same.
Initially, stocks dropped on the news.
But after selling off, the major indices rallied and finished at highs of the day…high enough to put the S&P and DOW in positive territory but for the NASDAQ to fall short.
Here’s where the major indices ended the day:
- The S&P finished flat. Up just a point, the S&P ended at 3,007.
- The DOW ended higher by 0.1%. Adding 36 points, the DOW closed at 27,147.
- The NASDAQ was down 0.1%. With a 32 point gain, the NASDAQ finished at 8,186.
Crude Oil (CL) retreated for the 2nd day in a row. With a 2.1% loss, CL ended at $57.91 a barrel.
As some would expect, President Trump was quick to offer his thoughts on the Fed’s decision. Trump tweeted “Jay Powell and the Federal Reserve Fail Again. No “guts,” no sense, no vision!”
The President has high hopes for the Fed, hoping they will drop rates and even consider “negative” interest rates like some countries. But Fed Chair Powell has made it clear that the Fed is unlikely to resort to negative rates, instead relying on bond purchases like they did during the financial crisis.
FedEx (FDX) was hammered today, suffering a 12.9% loss after an earnings miss and lowering future guidance. FedEx blamed the miss on weakening global demand and the impact of the trade war.
And Adobe Systems (ADBE) lost 1.8% after better than expected earnings, but weaker than expected revenue.
Trading Futures, options on futures and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. The lower the day trade margin, the higher the leverage and riskier the trade. Leverage can work for you as well as against you; it magnifies gains as well as losses. Past performance is not necessarily indicative of future results.
Recommended Content
Editors’ Picks
EUR/USD retreats below 1.0700 after US GDP data
EUR/USD came under modest bearish pressure and retreated below 1.0700. Although the US data showed that the economy grew at a softer pace than expected in Q1, strong inflation-related details provided a boost to the USD.
GBP/USD declines below 1.2500 as USD rebounds
GBP/USD declined below 1.2500 and erased the majority of its daily gains with the immediate reaction to the US GDP report. The US economy expanded at a softer pace than expected in Q1 but the price deflator jumped to 3.4% from 1.8%.
Gold holds near $2,330 despite rising US yields
Gold stays in positive territory near $2,330 in the second half of the day on Thursday. The benchmark 10-year US Treasury bond yield is up more than 1% on the day above 4.7% after US GDP report, making it difficult for XAU/USD to extend its daily rally.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.