MW: S&P 500 near record high ahead of Fed decision
By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) — U.S. stocks were little changed on Wednesday, with the S&P 500 index near its record high, as Wall Street waited for the Federal Reserve’s monetary-policy decision.
FedEx Corp. FDX +3.11% climbed 3% after the shipping company reported earnings that beat estimates.
Adobe Systems Inc. ADBE +6.75% surged 7.4% after the provider of graphic-design tools said it had accumulated more than a million customers for its online services.
The Dow Jones Industrial Average DJIA -0.12% fell 16.44 points, or 0.1%, to 1,513.29.
The S&P 500 index SPX +0.03% held steady at 1,704.84, with consumer staples falling hardest and technology the best performing of its 10 major sectors.
The Nasdaq Composite COMP +0.12% gained 4.73 points, or 0.1%, to 3,750.43.
The Federal Open Market Committee concludes a two-day policy gathering Wednesday, with analysts surveyed by MarketWatch expecting the central bank to cut $10 billion from its $85 billion in monthly bond purchases. Read why taper ‘timing is irrelevant’ for longer-term investors.
The FOMC’s policy statement is due at 2 p.m. Eastern, with Fed Chairman Ben Bernanke holding a news conference at 2:30 p.m. Eastern.
“The data is not supporting the taper, but I still think they are going to move forward. We’ve already seen a surge in interest rates, the Fed may feel like they just have to get it over with, by starting a modest taper,” said Elizabeth Ptacek, senior vice president and senior credit real-estate analyst at KeyBank.
Housing starts rose 0.9% to a fewer-than-expected 891,000 annual pace in August, the Commerce Department reported.
“It’s a disappointing headline, but the strength in single-family starts should be welcome, and reinforces our view that the housing recovery remains in place, and housing will continue to support economic growth,” said Ptacek.
Kate Gibson is a reporter for MarketWatch, based in New York.
