MARKET SNAPSHOT: S&P 500, Dow, Nasdaq End At Records
September 19 2017 - 4:43PM
Dow Jones News
By Sara Sjolin, MarketWatch , Ryan Vlastelica
Dollar slips as FOMC kicks off two-day meeting
All three main U.S. stock indexes ended at all-time highs on
Tuesday, as the Federal Reserve began its two-day policy meeting
where they are expected to finalize the details on the unwinding of
its $4.5 trillion balance sheet.
The Dow Jones Industrial Average rose 39.45 points, or 0.2%, to
22,370.80, climbing for the eighth consecutive session and notching
its 41st record close of the year.
The S&P 500 index rose 2.78 points, or 0.1%, to 2,506.65,
closing at a record for the 36th time this year. Tuesday's gain is
its sixth over the past seven sessions.
The Nasdaq Composite Index rose 6.68 points to 6,461.32, a gain
of 0.1%. The tech-heavy index set a record for the 49th time in
2017 and is currently up 20% year-to-date.
Telecoms stocks were the biggest gainers of the day, up 2.3%.
Financial were among the best performers, with the sector up about
0.8%.
"Markets are paying attention to what they should be paying
attention and that is earnings growth," said Karyn Cavanaugh,
senior market strategist at Voya Financial.
Cavanaugh did not rule out pullbacks in the near future, but
noted that investors should not worry about the Federal Reserve's
plan to reduce its balance sheet.
"Any reduction in the Fed balance sheet will be gradual and it
is happening on the backdrop of improving economy in the U.S. and
globally. But at the same time, we don't know how the market will
react because we have never had this situation before," Cavanaugh
said.
The Federal Open Market Committee is widely expected to say it
will start reducing its $4.5 trillion portfolio of government
securities when it releases its policy update on Wednesday. Rates
are forecast to stay on hold, but traders will be looking hints if
more hike are coming later in the year.
Read:Fed's balance-sheet unwind will be moment of truth for
financial markets
(http://www.marketwatch.com/story/feds-balance-sheet-unwind-will-be-moment-of-truth-for-financial-markets-2017-09-18)
The dollar gave up some of its recent gains ahead of the Fed
meeting, with the ICE Dollar Index down 0.3% at 91.78 on
Tuesday.
President Donald Trump gave his first address to the United
Nations General Assembly
(http://blogs.marketwatch.com/capitolreport/2017/09/19/president-donald-trump-speaks-to-the-united-nations-live-blog-and-video/),
and at one point stated that the U.S. was "ready, willing and able"
to act against North Korea militarily, and that the U.S. would
"totally destroy" the country if necessary. Markets were little
impacted by the speech.
Other economic news: So-called housing starts slipped
(http://www.marketwatch.com/story/housing-starts-dip-in-august-but-permits-surge-in-sign-of-optimism-2017-09-19)0.8%
to an annual rate of 1.18 million in August from an upwardly
revised 1.19 million in July. Permits to build new homes jumped
5.7% to a 1.3 million rate, matching the level in January and
marking the second highest amount since 2007.
The import-price index
(http://www.marketwatch.com/story/cost-of-imported-goods-surge-in-august-led-by-fuel-2017-09-19)jumped
0.6% last month to match the biggest increase since January,
largely due to higher oil prices.
See:MarketWatch's economic calendar
(http://www.marketwatch.com/economy-politics/calendars/economic)
Stock movers: Shares of Best Buy Co. Inc.(BBY) dropped 8% after
its earnings outlook fell short of expectations.
AutoZone Inc.(AZO) fell 5% despite the auto parts retailer
reported earnings and revenue that beat forecasts
(http://www.marketwatch.com/story/autozones-stock-rallies-after-profit-and-sales-rise-above-expectations-2017-09-19).
The auto parts retailer said its same-store sales grew at 1%
instead of 1.6% increased forecast by analysts.
Shares of Valero Energy Corp. (VLO) rose 0.7% after the company
and Plains All American Pipeline LP(PAA) said late Monday they will
drop a deal for Valero to acquire two California distribution
terminals
(http://www.marketwatch.com/story/valero-plains-all-american-drop-deal-after-california-lawsuit-2017-09-18)
after interference from the state's attorney general.
Michael Kors Holdings Ltd.(KORS) shares jumped 3.4% after
Oppenheimer analysts upgraded the stock to outperform from
perform.
Other markets: Asian markets closed mixed, while European stocks
(http://www.marketwatch.com/story/european-stocks-slip-as-traders-wait-for-fed-rate-update-2017-09-19)
ended with modest gains.
Oil prices gave up gains to trade lower
(http://www.marketwatch.com/story/oil-resumes-climb-on-talk-of-extended-production-cut-2017-09-19),
and gold inched higher
(http://www.marketwatch.com/story/gold-stalls-at-three-week-low-as-feds-signals-on-late-year-policy-awaited-2017-09-19)
but most other metals declined.
(END) Dow Jones Newswires
September 19, 2017 16:28 ET (20:28 GMT)
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