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S&P 500 edges lower ahead of Fed decision

Reuters 

By Sruthi Shankar

(Reuters) - The 500 inched lower on Thursday, as disappointing results from a slew of companies, including Inc, countered gains in stocks ahead of the Federal Reserve's interest rate decision.

Among the biggest decliners on the benchmark index were , and Inc , all falling on disappointing quarterly results.

tumbled 7.2 percent after the chipmaker forecast revenue for the holiday quarter below analysts' estimates, as it took a hit from the loss of chip sales to Apple Inc .

That added to the technology index's <.SPLRCT> 0.4 percent loss and weighed on the

The banks index <.SPXBK> was up 0.8 percent, with of America Corp rising 1.7 percent and & Co gaining 1.1 percent ahead of the Fed decision.

The sluggish moves came after U.S. stocks surged more than 2 percent on Wednesday after the midterm election results came in largely as expected, with Democrats winning control of the and Donald Trump's expanding its majority.

"After that huge move up yesterday, I'd just be delighted to see if it holds on," said Ed Keon, at QMA, a in Newark,

The U.S. central bank, which is set to release its rate decision at 2:00 pm ET, is expected to leave interest rates unchanged, but the statement that follows could lay the ground for a fourth rate hike in December as well as next year.

Yield on the 2-year Treasury notes , which is most sensitive to traders' view on Fed policy, edged higher. [US/]

"If you've higher bond yields and higher stock prices, that means that investors have become a little less fearful that the Fed will stop this economic expansion prematurely," Keon said.

At 12:59 p.m. ET the <.DJI> was up 36.88 points, or 0.14 percent, at 26,217.18, the <.SPX> was down 4.62 points, or 0.16 percent, at 2,809.27 and the Composite <.IXIC> was down 32.24 points, or 0.43 percent, at 7,538.52.

The Dow was propped up by gains in and and JPMorgan.

Wynn Resorts fell 12 percent after the missed third-quarter profit estimate and warned of a slowdown in the key market. Shares of peers and also fell.

dropped 5.4 percent and dragged on other homebuilders after it warned of rising home prices and higher mortgage rates weighing on demand. The <.HGX> fell 1.4 percent.

plunged 14.7 percent after the generic drugmaker cut full-year earnings forecast on lowered expectations from its

Declining issues outnumbered advancers for a 1.13-to-1 ratio on the NYSE and for a 1.00-to-1 ratio on the

The S&P index recorded 33 new 52-week highs and two new lows, while the Nasdaq recorded 69 new highs and 64 new lows.

(Reporting by in Bengaluru; Editing by Arun Koyyur)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, November 08 2018. 23:55 IST
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