Stocks on Wall Street fell in volatile trading on Wednesday after the Federal Reserve said it would keep its stimulus program intact for the time being, as expected, though it also nodded to a weaker economic growth outlook.
In trading after the Fed’s announcement, indexes fell to their lows for the day before recovering slightly. The Standard & Poor’s 500-stock index was 0.7 percent lower and the Dow Jones industrial average lost 0.6 percent.
The Nasdaq composite fell 0.7 percent. In announcing the widely expected decision, Fed officials nodded to a weaker growth outlook due in part to a fiscal fight in Washington that shuttered much of the government for 16 days earlier this month.
The labor market has shown “some” further improvement, the Fed said, despite some recent weakening in the figures. It dropped a reference to a “tightening of financial conditions observed in recent months” from its list of risks to the outlook.
Before the Fed’s statement was released, futures markets indicated a 52 percent chance of the first quarter-point rate hike by April 2015; that rose to 96 percent by September 2015. Yields on the 10-year United States Treasury note have fallen back to 2.50 percent, compared with almost 3 percent in early September.
The ADP National Employment Report showed on Wednesday that private-sector employers in the United States added 130,000 jobs in October, fewer than economists had expected.
The market barely reacted to the data. Andrew Wilkinson, chief economic strategist at Miller Tabak & Company, said the job growth reflected in the ADP report “was light, with blame likely falling at the door of Washington politicking.”
European markets drifted lower through the day. London’s FTSE 100 closed unchanged, and the Euro Stoxx 50 index of euro zone blue chips was down 0.3 percent at the close of trading.
Earlier in the day, Asian markets closed higher, with Japan’s Nikkei up 1.2 percent, and Hong Kong’s Hang Seng 2 percent higher.
On Tuesday, the Dow and Standard & Poor's 500 ended at record closing highs after economic data supported views that the Federal Reserve would keep its stimulus intact for several months. Tuesday's rally brought the S.&P. 500’s gain this year to 24.2 percent.
In another busy day of earnings, shares of General Motors, the largest American automaker, rose 3 percent after it reported better-than-expected quarterly profit because of strength in its core North American market and a smaller-than-anticipated loss in Europe.
Shares of Yelp fell 5.8 percent a day after the business-search service firm reported a wider third-quarter loss. Western Union, the world’s largest money-transfer company, reported a 20 percent drop in third-quarter profit, hurt by lower revenue from its consumer business and higher expenses.
Its shares slumped 11.9 percent. LinkedIn shares dropped 4.9 percent in the wake of the company’s conservative forecast on Tuesday for revenue for the rest of the year.
nytimes.com
In trading after the Fed’s announcement, indexes fell to their lows for the day before recovering slightly. The Standard & Poor’s 500-stock index was 0.7 percent lower and the Dow Jones industrial average lost 0.6 percent.
The Nasdaq composite fell 0.7 percent. In announcing the widely expected decision, Fed officials nodded to a weaker growth outlook due in part to a fiscal fight in Washington that shuttered much of the government for 16 days earlier this month.
The labor market has shown “some” further improvement, the Fed said, despite some recent weakening in the figures. It dropped a reference to a “tightening of financial conditions observed in recent months” from its list of risks to the outlook.
Before the Fed’s statement was released, futures markets indicated a 52 percent chance of the first quarter-point rate hike by April 2015; that rose to 96 percent by September 2015. Yields on the 10-year United States Treasury note have fallen back to 2.50 percent, compared with almost 3 percent in early September.
The ADP National Employment Report showed on Wednesday that private-sector employers in the United States added 130,000 jobs in October, fewer than economists had expected.
The market barely reacted to the data. Andrew Wilkinson, chief economic strategist at Miller Tabak & Company, said the job growth reflected in the ADP report “was light, with blame likely falling at the door of Washington politicking.”
European markets drifted lower through the day. London’s FTSE 100 closed unchanged, and the Euro Stoxx 50 index of euro zone blue chips was down 0.3 percent at the close of trading.
Earlier in the day, Asian markets closed higher, with Japan’s Nikkei up 1.2 percent, and Hong Kong’s Hang Seng 2 percent higher.
On Tuesday, the Dow and Standard & Poor's 500 ended at record closing highs after economic data supported views that the Federal Reserve would keep its stimulus intact for several months. Tuesday's rally brought the S.&P. 500’s gain this year to 24.2 percent.
In another busy day of earnings, shares of General Motors, the largest American automaker, rose 3 percent after it reported better-than-expected quarterly profit because of strength in its core North American market and a smaller-than-anticipated loss in Europe.
Shares of Yelp fell 5.8 percent a day after the business-search service firm reported a wider third-quarter loss. Western Union, the world’s largest money-transfer company, reported a 20 percent drop in third-quarter profit, hurt by lower revenue from its consumer business and higher expenses.
Its shares slumped 11.9 percent. LinkedIn shares dropped 4.9 percent in the wake of the company’s conservative forecast on Tuesday for revenue for the rest of the year.
nytimes.com
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