As anticipated, FOMC raises FFunds rates 25BP to 0.75 - 1.00% with the 'dot plot' showing just 2 more hikes in 2017. In perspective, this is the 3rd hike in 11 years. Easy there FOMC.
Market is higher on the news but financial stocks are lower as they wanted more than 3 hikes this year. An initial solid surge followed by trading laterally toward Yellen's press conference.
SP500 15.41, 0.65%
NASDAQ 32.88, 0.57%
DJ30 91.95, 0.44%
SP400 1.04%
RUTX 1.21%
SOX 0.57%
Strength in the small and midcaps as they try to recover lost ground as they led lower during the recent pullback.
Machinery, materials, metals, biotechs up, semiconductors are up as well, China stocks struggling some.
Yellen's presser is 10 minutes away so we will have to see how stocks react when her mouth opens. There are some good moves out there and we are looking at VMW as another buy on top of CLVS we picked up at the open.
Of course the question now is, at least after the Yellen talks, whether this move, if it can hold, is the start of a new leg upside after the test.
Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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