The Federal Reserve answered stock market investors on Wednesday afternoon, lifting rates an expected 75 basis points and posting an aggressive "dot plot" (interest rate road map) into 2024.
The Nasdaq reversed course and added 0.7%, while the S&P 500 recouped 0.5%. The Dow Jones Industrial Average gained 0.2%. Small caps acted better, with the Russell 2000 index adding 0.7%.
Stock Market Remains Green On Light Trading
Volume on the NYSE and Nasdaq was down compared to the same time Tuesday.
The Nasdaq 100-tracking Invesco QQQ Trust was up 1.1%. The yield on the 10-year U.S. Treasury note dipped to 3.53%.
Crude oil was unchanged, trading at $83.98 per barrel. The SPDR Select Energy ETF (XLE) gained 0.8%.
Bitcoin gained 3.9% to $19,705.
In Europe, the German DAX stock index gained 0.8%, Paris CAC 40 0.9%, and London FTSE 100 0.6%, to close out the trading day.
The MBA Mortgage Applications Composite Index change for the week ended Sept. 16 was 3.8%, an improvement over the -1.2% change the prior week. The Purchase Index increased 1.0% compared to 0.2%, while the Refinance Index popped 10.4% versus a negative 4.2%.
The current national average 30-year fixed mortgage rate is a hefty 6.33%.
August Existing Home Sales came in at 4.8 million units, versus the 4.7 million consensus, with the month-over-month rate dipping 0.4% and the year-over-year rate dropping 19.9%.
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Stock Market Gainers And Losers: Food Stock Pops, Travel Stocks Drop
Norwegian-based Freyr Battery soared 20% on heavy volume after a Morgan Stanley analyst chose FREY as his top automotive pick, raising his price target to $26. The company has a 98 Relative Strength Rating and 92 Composite Rating.
Frey is ranked No. 7 in the Alternative Energy group, which holds the fourth spot out of the 197 industries that IBD tracks.
General Mills gapped up 6.9% on heavy volume after reporting better-than expected fiscal Q1 2023 EPS. It also raised full-year 2023 organic net sales growth guidance.
The company holds the No. 6 spot in the Packaged Foods group, which is ranked No. 15 out of the 197 industries. The packaged food industry has been gaining popularity as investors look to staples for a defensive play.
Northrop Grumman jumped 2.3% on heavy volume as geopolitical tensions in Ukraine rise.
Las Vegas Sands dropped 4% after a Tuesday rally, undercutting the 40.08 buy point. It triggered the 7% to 8% sell rule on the MarketSmith chart. Shares are now trading below their 21-day exponential moving average.
Carnival shed 2.2% as travel companies are seeing weakness on recession fears and increased geopolitical tensions.
IBD 50 Stocks On The Move: Beverage Stock Leads The Day
The Innovator IBD 50 ETF rose 1%, holding up better than the major indexes.
Wingstop was up 1.9% on light volume, trading above its 21-day exponential moving average. Comstock Resources added 1.2% and is trading above its 21-line.
Hubbell gapped up 3.3% on heavy volume and is extended from a consolidating base with a buy point of 212.64.
This is an electrical and wiring company that holds a 95 Composite Rating and a 90 EPS Rating. HUBB stock is ranked No. 2 in the Electrical Power and Equipment group. The sector has moved up to No. 43 from No. 52 one week ago, and No. 73 four weeks ago.
Fitness beverage maker Celsius reversed course and added 0.8% and is above its 21-day exponential moving average, finding support at its 50-day moving average.
