The Dow Jones Industrial Average closed at 28,032.38 on Wednesday with a gain of 36.78 points or 0.13%. The S&P 500 closed at 3,385.49 for a loss of 15.71 points or -0.46%. The Nasdaq Composite closed at 11,050.47 for a loss of 139.85 points or -1.25%. The VIX Volatility Index was higher at 26.12 for a gain of 0.53 points or 2.07%.
Wednesday's market movers
Large-cap indexes closed mostly lower Wednesday. Retail sales and the Federal Open Market Committee's statement were the day's top two headlines.
In morning trading, retail sales showed an increase of 0.6% in August, following an increase of 0.9%, and showing evidence of an improving but gradual pandemic recovery. Reports also said new daily coronavirus cases in the U.S. had hit their highest in a month, and that the government plans to distribute a Covid-19 vaccine within 24 hours of an approval.
The FOMC's releases rounded out the day's results and left stocks mostly lower for the day. The FOMC reiterated its new 2% average target for inflation. It also left its key federal funds rate unchanged at 0% to 0.25%. Projections from the Committee showed that rates would stay at current levels until 2023, suggesting prolonged challenges for the economy.
Stock highlights for the day included the following:
- Facebook (FB, Financial) down 3.27% after rumors of an antitrust suit from the Federal Trade Commission.
- Kodak (KODK, Financial) up 36% on independent review showing no legal violations surrounding its recent loan.
- Cloud-based, data warehousing company Snowflake (SNOW, Financial) debuted its initial public offering with a gain of 111.6%.
Economic reports affecting market trading included the following:
- The MBA Mortgage Applications Index decreased 2.5% following an increase of 2.9%. The MBA's average 30-year mortgage rate was unchanged at 3.07%.
- Retails sales increased 0.6% in August following an increase of 0.9%. Retail sales year over year increased 2.6%. Retail sales excluding autos increased 0.7% following an increase of 1.3%.
- Business inventories increased 0.1% in July following a decrease of 1.1%.
- The NAHB Housing Market Index improved to 83 in September from 78.
- The EIA's Weekly Petroleum Status report showed crude oil inventory decreased by 6.5 million barrels.
- The Fed kept the federal funds rate unchanged at 0% to 0.25%.
- The Treasury's international capital flow report showed overall net capital flows of -$88.7 billion in July, foreign bond investments of -$22.8 billion and net long-term Treasury international capital flows of $10.8 billion.
Small-cap stocks
In small caps, the Russell 2000 closed at 1,552.33 for a gain of 14.17 points or 0.92%. The S&P 600 closed at 882.78 for a gain of 6.04 points or 0.69%. The Dow Jones U.S. Small-Cap Growth Index closed at 10,831.92 for a gain of 60.86 points or 0.57%. The Dow Jones U.S. Small-Cap Value Index closed at 7,150.12 for a gain of 57.26 points or 0.81%.
Other notable indexes
Other notable index closes included the S&P 400 Mid-Cap Index at 1,898.55 for a gain of 6.07 points or 0.32%; the S&P 100 at 1,563.88 for a loss of 13.03 points or -0.83%; the Nasdaq 100 at 11,247.60 for a loss of 191.28 points or -1.67%; the Russell 3000 at 1,981.53 for a loss of 6.89 points or -0.35%; the Russell 1000 at 1,882.91 for a loss of 7.96 points or -0.42%; the Wilshire 5000 at 34,612.68 for a loss of 128.06 points or -0.37%; and the Dow Jones U.S. Select Dividend Index at 608.64 for a gain of 6.84 points or 1.14%.
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