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Dow closes above 22,000 as fed minutes spark uncertainty over rate hikes

Published 08/16/2017, 04:09 PM
© Reuters.  US stocks closes higher on Wednesday
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Investing.com – U.S. stocks closed higher on Wednesday, shaking off subpar U.S. housing data and earlier negative sentiment following President Donald Trump's decision to disbanded his manufacturing council amid a raft of CEO exits.

In a tweet, the president said he was ending the White House council on manufacturing and the Strategic and Policy reform.

Investor attention, however, shifted to the minutes from the Federal Reserve’s July meeting later in the session, which showed members were split on the path of rate hikes given the slowdown in inflation.

The minutes were widely viewed as dovish, as it showed Fed members were reluctant to view the slowdown in inflation as transitory, believing that the Fed could stand pat on interest rates increases until data signaled a rebound in inflation.

"In considering the timing of further adjustments in the federal funds rate, they would be evaluating incoming information to assess the likelihood that recent low readings on inflation were transitory". The minutes said.

Meanwhile, data showing the construction of multi-family houses tumbled to a 10-month low, had a relatively tame impact on U.S. stocks, as investors looked ahead to corporate earnings.

Housing starts dropped 4.8% to a seasonally adjusted annual rate of 1.16 million units, the Commerce Department said on Wednesday.

On the corporate earnings front, Cisco Systems Inc (NASDAQ:CSCO) is expected to report earnings after US markets close while Wal-mart and Alibaba (NYSE:BABA) among others are slated for tomorrow.

The Dow Jones Industrial Average closed higher at 22,024.87. The S&P 500 closed about 0.14% higher while the Nasdaq Composite closed at 6345, up 0.19%.

‘Bulls and Bears’ on Wall Street

The top Dow gainers for the session: United Technologies Corporation (NYSE:UTX) up 2.4%, Home Depot Inc (NYSE:HD) up 1.4% and Visa Inc (NYSE:V) up 0.8%

Goldman Sachs Group Inc (NYSE:GS) down 0.9%, Exxon Mobil Corporation (NYSE:XOM) down 0.7% and JPMorgan Chase & Co (NYSE:JPM) down 0.7%, were among the worst Dow performers of the session.

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