The Federal Reserve did just what was expected and the market took it as a mild positive. The central bank's rate setting committee, in its first unanimous vote since May, left interest rates unchanged and the group's projections signaled they expect rates to remain where they are through 2020.
ECONOMIC EVENTS: In the U.S., the Consumer Prices Index report beat estimates for November with a 0.3% headline rise and a 0.2% core gain. The 12-month CPI rate of growth rose to 2.1% on the headline, while the core rate was steady with growth of 2.3% year-over-year.
In central bank news, the Federal Reserve kept its federal funds rate range unchanged, while the year-end 2020 median federal funds rate projection currently stands at 1.6%, flat with the current rate range. In its statement on the decision, the Fed said its current policy stance is "appropriate," noting that economic activity since the last FOMC meeting has been rising at a "moderate rate."
TOP NEWS: Shares of Home Depot (HD) fell 3.8% after the company gave early 2020 guidance in conjunction with its investor and analyst meeting. While Morgan Stanley analyst Simeon Gutman said he, and the buy-side, were already expecting below consensus guidance, Gutman "did not anticipate the magnitude of the miss relative to expectations," the analyst told investors.
Shares of Boeing (BA) were fractionally higher after Federal Aviation Administration chief Steve Dickson told CNBC this morning that regulators won't likely clear Boeing's 737 Max airplanes for flight until 2020. Dickson is testifying today before the U.S. House Transportation and Infrastructure Committee alongside Earl Lawrence, the FAA's aircraft certification chief, on the series of steps that must be completed before the agency will allow Boeing's grounded 737 MAX to resume flying.
Last night, Chevron (CVX) announced a 2020 organic capital and exploratory spending program of $20B. Additionally, Chevron said that a downward revision in its longer-term commodity price outlook as well as its "disciplined approach to capital allocation" are leading it to reduce funding to various gas-related opportunities including Appalachia shale, Kitimat LNG, and other international projects. The potential for divestments and the lowered oil price outlook will result in Chevron taking a non-cash, after tax impairment charges of $10B-$11B in its fourth quarter 2019 results.
Shares of GameStop (GME) dropped 15% after the video game retailer reported lower than expected quarterly results and cut its guidance for fiscal 2019. The company said it expects the trend of consumers delaying their spending in anticipation of new gaming console releases to continue until the fourth quarter of 2020.
Meanwhile, Nestle (NSRGY) agreed to sell its U.S. ice cream business to Froneri, an ice cream-focused joint venture Nestle created in 2016 with PAI Partners, for a transaction value of $4B.
MAJOR MOVERS: Among the noteworthy gainers was Mednax (MD), which rose 8.1% after the company said it welcomes "constructive dialogue" with Starboard Value, which reportedly has nominated a slate of directors at the healthcare services company. Also higher was Ollie's Bargain Outlet (OLLI), which gained 15% after reporting quarterly results. In addition, LogMeIn (LOGM) was 7.8% higher after Bloomberg reported that a private equity firm and hedge fund are teaming up in a bid to acquire the company.
Among the notable losers was Dave & Buster's (PLAY), which slid 3.5% after it reported quarterly results and narrowed its revenue guidance for fiscal 2019. Also lower after reporting quarterly results were United Natural Foods (UNFI) and The Children's Place (PLCE), which fell 28.4% and 23.1%, respectively.
INDEXES: The Dow rose 29.58, or 0.11%, to 27,911.30, the Nasdaq gained 37.87, or 0.44%, to 8,654.05, and the S&P 500 advanced 9.11, or 0.29%, to 3,141.63.
Home Depot
-3.88 (-1.80%)
Boeing
+2.14 (+0.62%)
Chevron
-1.68 (-1.42%)
GameStop
-0.97 (-14.92%)
Nestle
+ (+0.00%)
Pediatrix Medical
+1.975 (+7.97%)
Ollie's Bargain Outlet
+9.11 (+15.11%)
LogMeln
+5.86 (+7.92%)
Dave & Buster's
-1.48 (-3.69%)
United Natural Foods
-2.81 (-28.44%)
Children's Place
-16.32 (-23.09%)