The Dow Jones Industrial Average ended a day of choppy trading with a 0.1% drop. The morning’s 0.2% uptick faded early, but the index built momentum after the Fed’s minutes release at 11 a.m. ET. It shed most of its gain at the closing.
The Fed’s minutes on Wednesday showed that the path to higher interest rates remains intact. The latest producer price index and employment numbers showed that inflation was slowing down at a lower pace than expected. Another 75-basis-point hike in November is in the cards with a possible terminal rate of 4.6% in 2023.
Thursday’s consumer price index is on watch as well. Should it come in above expectations, bond yields could move the stock market, according to Quincy Krosby, chief global strategist at LPL Financial.
According to Fed meeting minutes released today, the Federal Reserve will aim to “calibrate the pace of further policy tightening” to lessen significant risk of its adverse effect on the economy.
The 2022 GDP will likely contract to 0.2% and will inch up to 1.2% in 2023, well below the 5.7% in 2021.
The Nasdaq composite reversed from a loss of 0.2% to notch a 0.5% gain in late trading. But it closed today’s session slightly lower. The S&P 500 also faded late and closed 0.3% lower. The small-cap Russell 2000 pared losses after it led declines by nearly 1% in the morning session. It was down 0.3% again at closing bell.
The yield on the benchmark 10-year Treasury note was unchanged at 3.9%. Crude oil fell more than 2% to $87.04 a barrel.
Outside Dow Jones: Stocks Moving Today
Solar stocks fell sharply in today’s market. Enphase (ENPH) has fallen nearly 3%. Canadian Solar (CSIQ) has plunged nearly 4%, while First Solar (FSLR) is down over 3%. First Solar is testing its 50-day moving average.
SunPower (SPWR) has gapped down 10% and fallen below its 200-day moving average. Closely associated lithium play Albemarle (ALB) has gapped down 9% and fallen below its 50-day line. The stock was added to the IBD Leaderboard watchlist this week.
EV stocks are moving in today’s market, with Chinese plays leading.