The markets sold off again today as investors responded to the latest rate hike and commentary from the Federal Reserve. All of the major indices started the day higher but ultimately closed lower on the day, reaching new bottoms yet again. The Dow 30 closed lower by 351, the S&P 500 closed lower by 39, and the Nasdaq 100 was the worst performer with a loss of 147.
The financial sector sold off to new lows for the fourth day in a row today after being higher by over 1% to start the day. The financials have lost over 10% since the start of the month and remain extended in the short term.
Transports were one of the weaker areas of the markets today thanks to a selloff in FedEx following their earnings announcement. The sector sold off another 2% today and has now lost over 15% this month alone.
Semiconductors held near lows for most of the day today, but following the Fed announcement sold off to break new lows. Earnings from Micron (MU ) continue to have investors concerned about oversupply of memory chips in the sector. For the last two months the sector has traded in a wider range near lows.
FedEx (FDX ) shares started the day lower despite reporting earnings and revenue that were better than Wall Street's expectations. The drop came as the company lowered their 2019 forecast thanks to weakness in Europe and global trade decline. The CEO blamed politicians for the current issues. For the month of December the stock has lost nearly 30%.
Hershey (HSY ) shares were higher today as the company received a rare double upgrade at Bank of America. The company said that recent investments made by Hershey should offer strong organic sales and profit in 2019, which would result in 10% annual returns for shareholders. Bank of America's new price target is $120.
Micron Technologies (MU ) shares sold off today as the company reported earnings. Though earnings came in just above expectations, revenue was light and the company's forward forecast was less than the street expected. Oversupply in memory chips has been the main concern in this sector this year.