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Weak results keep S&P, Nasdaq lower ahead of Fed decision


By Sruthi Shankar

(Reuters) - The 500 and the edged lower on Thursday, as weak earnings reports and caution ahead of the Federal Reserve's interest rate decision stalled a rally from the previous session, which was spurred by the outcome for midterm elections.

Among the biggest deliners on the 500 were Co, Ltd and D.R. Horton Inc, all falling on disappointing quarterly results.

dropped 7.1 percent after the chipmaker forecast sales revenue for the holiday quarter below analysts' estimates, as it took a hit from the loss of chip sales to Apple Inc.

Technology stocks, that rallied the most on Wednesday, dipped 0.4 percent.

The index was up 0.9 percent, with of America Corp rising 1.8 percent and gaining 1 percent ahead of the Fed decision.

Financials were among the few gainers, with the broader market dipping after a 2 percent surge on Wednesday as investors braced for a political gridlock in

"The market is going to go into a trading range for a while...(yesterday) was relief that there wouldn't be any severe economic changes for the next couple of years," said Bruce Bittles, at in Sarasota,

"The Fed may give some indication of what they're going to do in December, that might be holding the market back."

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.

At 11:39 a.m. EDT the was up 51.07 points, or 0.20 percent, at 26,231.37, the was down 2.56 points, or 0.09 percent, at 2,811.33 and the Composite was down 25.53 points, or 0.34 percent, at 7,545.23.

Gains in and lifted the Dow.

fell 12.1 percent after the missed third-quarter profit estimate and warned of a slowdown in the key market. That hit shares of peers Resorts and MGM Resorts

D.R. Horton fell 6.2 percent and dragged on other homebuilders after it warned of rising home prices and higher mortgage rates weighing on demand. The index fell 1.8 percent.

Co plunged 14.9 percent after the generic drugmaker cut full-year earnings forecast on lowered expectations from its

The top gainer on the S&P 500 was TripAdvisor Inc, which jumped 15.6 percent after the reported better-than-expected third-quarter profit.

Declining issues outnumbered advancers for a 1.19-to-1 ratio on the NYSE and for a 1.12-to-1 ratio on the

The S&P index recorded 33 new 52-week highs and two new lows, while the Nasdaq recorded 63 new highs and 58 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. 22:24 IST