The markets started the day slightly higher, but by the afternoon the Federal Reserve announced that they would officially raise rates a quarter point and prices fell again. The Fed removed the word moved the word "accommodative" from their statement announcing the hike, signaling to the rest of the world that easy money has officially come to an end. They also noted that they expect three rate hikes next year.
The news pulled down the banking sector as well as the overall markets. The Dow closed lower on the day by 100, the S&P 500 lost 9, and then Nasdaq 100 closed in the red by 17.
Sector News
The new communications services sector continues to plow forward to become the leading sector today. Facebook (NYSE: FB) and Netflix (NASDAQ: NFLX) were some of the strongest performers in the sector, with Netflix hinting at a short-term breakout.
Consumer discretionary was another stand out sector today, though both this sector and communications ultimately closed off the session's highs. Consumer discretionary continues to be supported by the strong US consumer and lower tax rates.
Stock News
Shares of Nike (NYSE: NKE) sold off today after the company reported earnings. Profits came in higher than expected as well as revenue, thanks to secure American consumers. Investors took the opportunity to take profits as analysts focused on profit margins, which came in less than expected. Despite the selloff, today the long-term trend still remains intact, with over 30% gains on the year.
KB Homes (NYSE: KBH) shares initially shot higher after reporting earnings. Investors focused on revenue, as they noticed a dip below expectations. Though home deliveries were higher by 8% compared to last year, investors could not get past the revenue number and pushed shares back in to the red, closing lower by about 5% on the day. Home builders continue to struggle with higher costs and higher interest rates.
SurveyMonkey (NASDAQ: SVMK) shares enjoyed a nice start to their initial offering. It will be considered a successful IPO, with final pricing set above the range at $12 per share. The company also successfully raised the size of its offering to 15 million shares and enjoyed a first day gain of over 60%.