Already up 8.1% on the month, the DJIA reacted to the day’s dearth of significant event-catalysts with traders preferring end of the quarter profit-taking. Risk appetites waned, with gold prices up to a fresh high at $1,310.30, and the Vix volatility gauge up 2.9% to 23.25. With only seven of its thirty marking gains on Wednesday, the DJIA drifted 23 points, or 0.2% lower to 10,835. The S&P500 took several turns at tackling its 1148 level before settling off 0.3% at 1145. The NASDAQ, with a 12.4% rally so far this month already under its belt, softened 0.1% to close at 2377.
A midday rally sent shares off their morning lows yesterday following a DOE weekly stockpile report showing a drawdown in crude inventory. Although inventories remain high, weekly stockpile numbers showed a 475K barrel drawdown to 357.9 million. Crude prices rallied 1.6%, or $1.68 to $77.86, lifting shares of DJIA component Chevron (NYSE:CVX) 0.5%.
Among the week’s many Fed speakers, Philadelphia Fed President Plosser added his thoughts on the advisability of further quantitative easing measures by the Fed in remarks yesterday. Today concludes September gains, leaving investors hopeful of upside surprises to the forthcoming earnings season. Yesterday FedEx (NYSE:FDX) CEO Fred Smith noted he is “very bullish” on prospects for next year, and plans to increase shipping rates as he anticipates a recovery in demand for international express shipping.
