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Stock Indexes Little Changed, Shrug Off Fed Minutes

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U.S. stocks kept to a narrow range Wednesday as the Federal Reserve's latest minutes revealed increasing support for an interest-rake hike.

The Nasdaq eased 0.1%, while staying near its 50-day moving average. The S&P 500 and the Dow Jones industrial average rose 0.1% each. Both the S&P 500 and the Dow are stuck under their 50-day lines.

Volume in the stock market today fell on both major exchanges. Recently, losses have come in rising volume, while gains have come in declining volume. That's the opposite of what bulls like to see.

The Dow Jones utility average was a top performer Wednesday, rising 1%. Given the chatter about an interest rate hike, the gain in the utility average was unexpected. (Higher interest rates make dividend-paying utilities less attractive.) From a wider perspective, some kind of rebound was no surprise. The utility average has retreated about 11% since its July 6 high.

Consolidated Edison (ED) has dropped 11% off its high. The stock rose almost 1%, after falling in 12 of the previous 13 sessions. PPL (PPL) also bounced 1% higher, but it remains 18% off its high. The electric utility has skidded in 10 of the previous 11 sessions.

Banks, which are likely to benefit from higher rates, made no dramatic moves Wednesday. Wells Fargo (WFC) and JPMorgan Chase (JPM) were nearly flat. Citigroup (C) trimmed 0.5%. Western Alliance Bancorp (WAL), a Phoenix-based midcap, advanced 0.6%.

Among IBD's 197 industry groups, dairy products and gold and silver miners booked the best gains for the day, according to preliminary data. Biotechs took the hardest hit.

Blue chips were almost even between winners and losers. Dow components Nike (NKE) and McDonald's (MCD) led with gains of about 1%.

In the S&P 500, Kroger (KR) grabbed the pole position with a 3% pop. A recent Morgan Stanley report said Kroger's alternative formats have not been fully priced into the stock. Rumors also have swirled over a possible merger with Whole Foods Market (WFM).

The Fed minutes from the September meeting showed three members favoring an immediate rate hike. They lost the argument, but may have set the tone for a rate hike in December.


IBD'S TAKE: An uptrend under pressure makes buying stocks more risky than ideal, but some stocks could be setting up for breakouts.


Railway CSX (CSX) reported quarterly results after the close. CSX fell 1% in regular trading Wednesday, its fourth daily loss in a row, and was slightly higher in extended trading. The Street's consensus estimate was for earnings of 45 cents a share, but the number came in at 48 cents. Revenue fell 8%.

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