Dow Jones Industrial Average Today Gains As Hawkish Tone Hits Federal Reserve

The Dow Jones Industrial Average pushed higher as traders dissected an update from the Federal Reserve.

Financial stocks were performing strongly on Wednesday as investors anticipate a rate hike in the months ahead. Rising expectations for a December rate hike pushed financial stocks higher.

Let's look at the final numbers on Wednesday for the DowS&P 500, and Nasdaq:

 Dow Jones: 18,144.20; 15.54; 0.09%

S&P 500: 2,139.17; 2.44; 0.11%

Nasdaq: 5,239.02; -7.77; -0.15%

Now, here's a look at today's most important market events and stocks, plus a preview of Thursday's economic calendar.

DJIA Today: December Rate Hike Back in Focus, Oil Prices

The Dow Jones gained 15 points as traders eyed several speeches from Federal Reserve officials and they digested the release of minutes from the central bank's September meeting. According to the meeting minutes, the Federal Reserve took a hawkish slant during last month's meeting. Several officials worry that the Fed must raise rates soon in order to stave off a recession.

There's just one big problem with rate hikes that no one seems to be discussing in the mainstream press. When rates increase, so do the debt burdens taken on from companies that have gobbled up cheap money during the Era of the Federal Reserve. When the central bank increases rates, they'll light the fuse of a massive "debt bomb" the could trigger disaster. We dug into the numbers, and we've found seven companies that are poised for lots of pain when rates go higher. 

It was another big day for the alternative transportation sector. This morning, General Motors Co. (NYSE: GM) announced it had invested in a Chinese car-sharing company called Yi Wei Xing Technology Co. GM declined to announce the size of the investment, but it's the latest sign that industry giants are transitioning to newer technologies to compete against upstart firms.

1 2
View single page >> |

Disclosure: None.

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.
Chee Hin Teh 4 years ago Member's comment

thanks for sharing

Chee Hin Teh 4 years ago Member's comment

Thanks for sharing