Stocks modestly higher ahead of Fed decision
NEW YORK — Stocks moved modestly higher in early morning trading Wednesday, ahead of the Federal Reserve’s interest rate announcement, a day after the market posted its biggest losses in five weeks.
Overseas, Asian markets fell amid new worries about the speed of economic recovery in China, while European markets were higher.
U.S. investors have put a summer rally on hold as they search for fresh signs the economy is strengthening and pulling out of recession. The latest assessment on how the economy is faring will come from the Fed, which ends a two-day meeting Wednesday afternoon with its rate decision and an assessment of the economy.
“Everything still starts and stops with the Fed,” said Larry Rosenthal, president at Financial Planning Services in Manassas, Va.
It is widely expected that the central bank will hold the federal funds rate near zero percent. What investors are uncertain about it how the Fed will size up the economy — whether it sees further signs of strengthening that would justify the gains in stocks since summer. Investors have bid stocks higher on the belief that the economy was pulling out of recession.
Rosenthal said investors also want to see what the Fed says about inflation. Fears of inflation due to an increase in government spending could force the Fed to raise interest rates. That, in turn, could slow down any economic recovery.
The Dow Jones industrial average rose 31.89, or 0.4 percent, to 9,273.34. The Standard & Poor’s 500 index rose 3.41, or 0.3 percent, to 997.76, while the Nasdaq composite index gained 10.10, or 0.5 percent, to 1,979.83.
A new report showing the nation’s trade deficit edged up less than expected in June had little effect on trading. The Commerce Department said the deficit increased to $27 billion from $26 billion in May, which was the lowest level since November 1999.
Economists polled by Thomson Reuters had expected the deficit to increase to $28.5 billion.
In corporate news, Macy’s Inc. reported a better-than-expected second-quarter profit. The retailer is also raising its outlook amid benefits from reducing costs.
The market is looking to bounce back a day after posting its biggest loss in five weeks. The Dow fell 1 percent on Tuesday, while the S&P dropped 1.3 percent.
With little new economic or earnings data to spur stocks higher, investors paused in their recent buying to book some gains. Uncertainty surrounding the Fed’s meeting also led investors to step to the sidelines.
Related News
US stock futures little changed as investors await data on jobs, housingSeptember 24th, 2009 Stock futures steady ahead of jobs, housing dataNEW YORK — Stock futures are little changed as investors wait for more clues on how the economy is faring. The quiet trading Thursday follows declines in markets overseas that came after the Federal Reserve left interest rates unchanged and said the pace of economic activity has improved.
Stocks rise to 11-month highs after Federal Reserve says economic activity has picked upSeptember 23rd, 2009 Stocks move higher after Fed announcementNEW YORK — A more upbeat assessment of the economy from the Federal Reserve sent stocks higher Wednesday, pushing the Dow Jones industrial average closer to 10,000. The Fed's governors said in a statement following their regular meeting on interest rates that the pace of economic activity has "picked up" since their last meeting in August.
Stocks open modestly higher as investors look to build on market's recent momentumAugust 24th, 2009 Stocks open higher, investors build on momentumNEW YORK — Investors are building on last week's momentum that sent major indexes to their highest levels of the year, pushing stocks higher in early trading. The moderate advance Monday follows gains in overseas markets.
Stock futures point toward higher opening as investors wait to hear from Fed chairmanAugust 21st, 2009 Stock futures point to modestly higher openingNEW YORK — Stock futures pointed to a modestly higher open as investors try to shake a two-day losing streak. Overseas markets mostly fell.
Stocks open slightly lower after data on inflation, industrial productionAugust 14th, 2009 Stocks dip after data on inflation, productionNEW YORK — Stocks drifted lower early Friday as investors looked for more reasons to keep the market's summer rally going. Investors paused after two days of buying as the Labor Department said a measure of inflation was flat in July after a slight increase in June.
Stocks hold on to gains as Federal Reserve, slightly more upbeat, sees economy 'leveling out'August 12th, 2009 Stocks hold gains as Fed ups view of economyNEW YORK — A more upbeat Federal Reserve reassured investors that they've been making the right bets. Stocks held on to their sharp gains Wednesday after the Fed, ending a two-day policy meeting, issued a more optimistic view of the economy and said it appears to be "leveling out." That was a significant change from the central bank's June assessment that the economy was shrinking at a slower pace.
Stocks modestly lower ahead of upcoming Federal Reserve meeting, retailer earningsAugust 10th, 2009 Stocks modestly lower in early morning tradingNEW YORK —Stocks were trading modestly lower Monday morning as investors look this week to the retail sector and the Federal Reserve for signs of how the economy is faring. Overseas, Asian markets rose amid a positive report on Japanese machinery orders, a key indicator of corporate capital spending.
Stocks decline modestly in early trading on mixed earnings; investors grow cautiousJuly 28th, 2009 Stocks fall modestly in early tradingNEW YORK — Stocks are falling modestly in early trading despite a better-than-expected report on retail sales. The U.S. market has risen sharply throughout the spring and summer on hopes of a recovery.
Stocks begin holiday-shortened week in positive territory, investors await week's key dataJune 29th, 2009 Stocks open higher ahead of week's key dataNEW YORK — Investors are beginning a holiday-shortened week on a positive note. Stocks are slightly higher in early trading Monday, following mixed moves in overseas markets.
Asian markets recover modestly ahead of Federal Reserve announcement; oil slips below $69June 24th, 2009 Asian stocks recover ahead of Fed announcementHONG KONG — Asian stock markets recovered modestly Wednesday as investors awaited the outcome of the U.S. Federal Reserve meeting later in the day.
Stocks end mixed but little changed as investors await statement from Federal ReserveJune 23rd, 2009 Stocks end mixed as investors await Fed statementNEW YORK — Investors are holding off making big moves while they wait for the Federal Reserve. Stocks ended mixed but little changed Tuesday, one day after a selloff.
Stocks nudge higher as investors await word on bank loan repayments; Fiat sticks by ChryslerJune 9th, 2009 Stocks edge higher as investors look to banksNEW YORK — Investors are showing little reaction to word that 10 of nation's largest banks can repay $68 billion in bailout money. Stocks are moderately higher but traders are reacting coolly to the Treasury Department's announcement that the banks, which were not named, will be allowed to repay the money they received from the $700 billion emergency rescue fund created by Congress at the height of the financial crisis in October.
Wall Street heads for higher open as investors await jobs data, retail sales reportsJune 4th, 2009 US stock futures point higher ahead of jobs dataNEW YORK — Stock futures are indicating a higher opening for the U.S. markets as investors await sales reports from retailers and data on the labor market.
Stocks adance modestly as investors look to hold gains, await data on pending home salesJune 2nd, 2009 Wall Street rises modestly a day after surgeNEW YORK — Investors are gently adding to their gains a day after rushing into the stock market. Stocks rose modestly early Tuesday as investors showed optimism but also a little caution after Monday's huge gains that followed a series of upbeat economic readings.
Stock futures edge higher after big gains, investors await economic data, earnings reportsMay 5th, 2009 Wall Street appears ready to extend big gainsNEW YORK — U.S. stock futures are edging higher as investors await a reading on the services sector and a bevy of earnings reports for further confirmation that the economy is improving.
Loading ...