A Slight Slip. Shares ended moderately in the red, ending a three-day winning streak. The lack of market-driving news after Wednesday’s rally might be the reason, as the Fed minutes came out largely in line with Chairman Jerome Powell’s dovish speech on Wednesday. All eyes are now on the G-20 summit set for this weekend as investors wait for a potential thaw between the U.S. and China on trade. In today’s After the Bell, we…
…look into the Fed’s November minutes release; …explain what today’s inflation data means; …and see what are the other concerns remained for 2019. Buy the Speech, Yawn at the Minutes
While Fed Chair Jerome Powell’s dovish speech on Wednesday sparked one of the strongest rallies of the year, investors largely yawned at the release of the November FOMC minutes this afternoon. Although stocks rallied earlier during the day, all three major indexes closed below the break-even line on Thursday.
The Dow Jones Industrial Average slipped 27.59 points, or 0.1%, to 25,338.84, while the S&P 500 declined 6.03 points, or 0.2%, to 2737.76, and the Nasdaq Composite lost 18.51 points, or 0.3%, to 7273.08.
Powell is “apparently exhausting the interest of the market in any linguistic clues coming out of the FOMC,” writes Michael Shaoul from Marketfield Asset Management on Thursday.
London Capital Group’s Jasper Lawler speculated this morning before the minutes was released: “Perhaps Powell’s dovishness last night was intended to offset more hawkish meeting minutes.” That proved to be too cautious.
While it is still almost guaranteed that we’ll see another Fed rate hike in December, the minutes fit with the Fedspeak of increased data dependency going forward. Some participants of the meeting have suggested scrapping the expectations of “further gradual increases” from guidance.