s&p, dow flat ahead of fed decision; applelifts nasdaq the s&p 500 and the dow were little changedon wednesday as gains in technology stocks were offset by losses in energy, ahead ofthe federal reserve's decision on interest rates. however, the nasdaq, which is more weightedtowards technology stocks, was lifted by a
aapl 52 week high, 6.4 percent rise in apple (aapl.o) followingthe company's strong earnings and iphone sales. a rate hike is not the likely outcome of thefed's first meeting under president donald trump as the central bank awaits more clarityon his policies. but investors will dissect the statement,expected at 2:00 p.m. et (1900 gmt), to see
how the policymakers view the economy undertrump and whether a recent spate of strong economic data alters their take on futureshikes. "we're in a very stable market with a lotof cross-currents. fourth-quarter earnings seem to be okay,"said chuck self, chief investment officer at isectors llc in appleton, wisconsin. "however, political uncertainty is makingit hard for investors to have conviction in the market." investors has paid close attention to trump'scomments and decisions, which have caused volatility.
his latest move to restrict travel to theunited states unleashed uncertainty and losses on wall street in the past few days. at 12:57 p.m. et the dow jones industrialaverage .dji was up 17.9 points, or 0.09 percent, at 19,881.99, the s&p 500 .spx was down 1.96points, or 0.08 percent, at 2,276.91 and the nasdaq composite .ixic was up 19.79 points,or 0.35 percent, at 5,634.58. investors hope quarterly earnings supportvaluations, especially after a post-election rally pushed wall street to record highs. fourth-quarter earnings of s&p 500 companiesare estimated to have risen 7.1 percent - the best growth in nine quarters - according tothomson reuters i/b/e/s.
however, investors are struggling with thequestion of whether the rally has gotten ahead of itself, self said. the s&p 500 is trading at 17.6 times forward12-month earnings, above the 10-year median of 14.7 times, according to starmine data. the impact of robust private payrolls dataalso appeared to fizzle out. eight of the 11 major s&p 500 sectors werelower, with energy's .spny 1.2 percent loss dragging the broader index. utilities .splrcu, which pay high dividendsand are considered bond proxies, lost 1.7 percent.
dow component exxon (xom.n) slipped 1.4 percentafter a string of price target cuts. the oil major had reported results on tuesday. while apple provided the biggest boost tothe three indexes after its stock hit an 18-month high, microsoft (msft.o) fell 1.6 percentand dragged down the s&p and the nasdaq. pitney bowes (pbi.n) plunged 18 percent afterthe mail equipment maker posted fourth-quarter profit and revenue that missed analysts' expectations. declining issues outnumbered advancers onthe nyse by 1,647 to 1,189. on the nasdaq, 1,418 issues fell and 1,376advanced. the s&p 500 index showed 30 new 52-week highsand two new lows, while the nasdaq recorded
106 new highs and 16 new lows.
