US stocks mostly stuck to the FOMC-day script, hewing to a tight range until the statement’s release, and then engaging in their usual fit of volatility as market participants attempted to divine all clues from the mighty Fed.
Post-statement, the first move tends to be the false move, and that was the case today as US stocks shot higher, DJIA gaining almost 90.
There just wasn’t enough fresh stuff from the Fed to sustain a rally, and stocks pulled back just as sharply, with some traders later citing apprehension about tomorrow’s weekly jobless claims and August existing home sales report.
DJIA slides 81.32 points to 9748.55, and Nasdaq Comp sheds 14.88 to 2131.42. S&P 500 ends 10.79 lower at 1060.87.
Perhaps traders do have something to fear in tomorrow’s home sales report.
WSJ’s Bob Hagerty reports that independent housing economist Tom Lawler expects the NAR to report a decline in August existing home sales. Lawler, who tracks local home sales across the country, estimates that August sales ran at a seasonally adjusted annual rate of 4.99M, down about 4.8% from July. A Dow Jones survey conducted Friday and Monday showed the consensus calling for a 2.9% rise.