US Stocks Higher after July FOMC Minutes

Investors still seeking yield in the equity market.

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Aug 17, 2016
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U.S. market indexes were higher on Wednesday, after the Fed released its July Federal Open Market Committee meeting minutes. For the day, the Dow Jones Industrial Average closed at 18573.94 for a gain of 21.92 points, or 0.12%. The S&P 500 was also higher, closing at 2182.22 for a gain of 4.07 points, or 0.19%. The Nasdaq Composite closed higher at 5228.66 for a gain of 1.55 points, or 0.03%. The VIX Volatility Index was lower for the day at 12.17 for a loss of -0.47 points, or -3.72%.

In the Dow Jones Industrial Average, the following stocks led gains for the day:

Pfizer (PFE, Financial) 1.01%

3M (MMM, Financial) 0.97%

E.I. du Pont de Nemours & Co. (DD, Financial) 0.87%

Johnson & Johnson (JNJ, Financial) 0.81%

Verizon (VZ, Financial) 0.78%

Chevron (CVX, Financial) 0.66%

American Express (AXP, Financial) 0.58%

A number of factors influenced market trading on Wednesday. The MBA Mortgage Applications report showed mortgage applications down 4% from the previous week. The EIA Petroleum Status report showed oil inventories down 2.5 million barrels from the previous week. Oil prices gained just slightly with WTI crude up 0.6% to $46.86.

The July FOMC meeting minutes were the main focus for the day. They showed that Fed officials felt the economy was strengthening but that there was not an immediate need for a rate increase. This has likely pushed rate increase expectations to December. The market reacted favorably to this on Wednesday, with the major indexes ending the day higher.

While rates are likely to increase this year, investors are still seeking yield in dividend stocks. In a CNBC report Wednesday, market specialists discussed the FOMC minutes and how the outlook might change investor perspectives on yield.

Disclosure: I do not own any stocks included in this article.

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