Day Traders Diary
The major averages close flat following the Fed's decision to cut interest rates for a second time. The Dow Jones Industrial Average erased a 211-point drop following the Fed decision to close up 36 points at 27.147. The S&P 500 also pared losses, closing up a point at 3006. The Nasdaq Composite dropped 8 points to 8177.
The U.S. central bank cut the overnight rate by 25 basis points to a range of 1.75% to 2%, as was widely expected. However, the Fed was divided in its decision to lower rates, with three officials dissenting. Central bank officials are also split on further action this year. Five Fed members wanted to keep rates unchanged while others supported lowering them to the current range and keeping them there. Seven others wanted at least one more rate cut.
Treasury yields pared some of their losses from earlier in the day. The benchmark 10-year rate traded at 1.77%while the 2-year yield was at 1.74%. The big banks, after wavering, performed well with JP Morgan up a percent. Citigroup rose nearly a percent.
To the downside, FedEx fell 12% following earnings and lower guidance. Adobe dropped 2% following earnings as well.
All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.