clear
Friday February 12th, 2016 1:21PM

Stocks flatten out after Fed delivers no surprises

By The Associated Press
NEW YORK (AP) -- A cheerful report on the U.S. economy, rising profits and no surprises from the Federal Reserve left the stock market nearly where it started on Wednesday.<br /> <br /> The news was nearly all good. The government said that the economy grew at a robust 4 percent annual rate this spring. Later in the day, the Federal Reserve did exactly what investors expected. It scaled back its support for the economy, while pledging to keep short term interest rates low "for a considerable time" after it stops buying bonds.<br /> <br /> Traders sold U.S. government bonds, pushing the 2-year Treasury note to 0.56 percent, the highest level this year. It's a clear sign bond traders think an improving economy will force the Fed to raise interest rates sooner rather than later. Meanwhile, stock investors were mainly sitting on their hands.<br /> <br /> "Good news is getting to be bad news again," said Jack Ablin, chief investment officer at BMO Private Bank, referring to the lack of enthusiasm among investors in the stock market. "The G.D.P. report is obviously good news, so why are stocks off? Because people are wondering when the party will come to an end."<br /> <br /> The Standard & Poor's 500 index ended with a gain of 0.12 of a point, or 0.01 percent, at 1,970.07.<br /> <br /> The Dow Jones industrial average slipped 31.75 points, or 0.2 percent, to close at 16,880.36. The Nasdaq composite rose 20.20 points, or 0.5 percent, to 4,462.90.<br /> <br /> The Fed announced plans to make further cuts to its monthly bond purchases, a program launched after the financial crisis to encourage borrowing and spending. At the current pace of cutbacks, the Fed's bond purchases will end in October.<br /> <br /> Most economists expect that the Fed could start raising rates next year as the economy improves.<br /> <br /> A strong report on the economy is always good news for the stock market over the long haul, said Darrell Cronk, Deputy Chief Investment Officer for Wells Fargo Wealth Management. In the near term, though, investors are bound weigh any good news against a possible interest-rate move from the Federal Reserve.<br /> <br /> "I'd love to get back to where what matters most for the market is the economy not what the latest read is on the Fed," Cronk said.<br /> <br /> Investors were also following the parade of big companies turning in their second-quarter results. The reports out Wednesday presented a mixed picture. Sliding sales for Goodyear Tire & Rubber knocked its stock down $2.14, or 8 percent, to $25.45.<br /> <br /> Twitter's stronger revenue sent its stock up 20 percent Wednesday. The company reported a quarterly loss late Tuesday but its revenue more than doubled over the year, thanks to new advertising tools and a surge in traffic from soccer fans following the World Cup. Twitter's stock surged $7.71 to $46.30.<br /> <br /> Amgen said Tuesday that it plans to lay off up to 15 percent of its worldwide workforce and close four sites, even as it reported second-quarter results that trounced Wall Street expectations. The drugmaker also raised its forecasts for its 2014 profit and sales. Amgen's stock climbed $6.70, or 5 percent, to $130.01.<br /> <br /> Overall, earnings at U.S. companies have been better than many expected. More than half of the companies in the S&P 500 have reported results for the second quarter, and seven out of 10 have posted higher profits than analysts projected, according to S&P Capital IQ.<br /> <br /> News of stronger U.S. economic growth sent prices for U.S. government bonds lower. The yield on the 10-year Treasury note jumped to 2.55 percent from 2.46 percent late Tuesday, a huge move in the usually placid bond market.<br /> <br /> In energy trading, the price of oil fell as inventories of gasoline and diesel continued to build. Benchmark U.S. crude fell 70 cents to close at $100.27 a barrel. Brent crude, a benchmark for international oils used by many U.S. refineries, fell $1.21 to close at $106.51 on the ICE Futures exchange in London. Wholesale gasoline fell 2.9 cents to close at $2.816 a gallon in New York.<br /> <br /> Gold for August delivery fell $3.40 to $1,294.90 an ounce. September silver rose a penny to $20.60 an ounce.
© Copyright 2016 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Judge denies motions to move, delay Tsarnaev trial
Lawyers for Boston Marathon bombing suspect Dzhokhar Tsarnaev asked a federal appeals court Wednesday to overturn a judge's decision to not move his upcoming trial out of state.
10:02PM ( 1 year ago )
High court to adopt electronic filing of cases
The Supreme Court is belatedly developing an electronic filing system similar to those used in courts around the country, Chief Justice John Roberts said Wednesday in his annual end-of-year report.
7:57PM ( 1 year ago )
Storm brings snow, cold to West for New Year's
A blustery winter storm dumped snow and ice across the West on Wednesday, making driving treacherous in the mountains from California to the Rockies and forcing residents and party-goers in some usually sun-soaked cities to bundle up for a frosty New Year's.
5:19PM ( 1 year ago )
U.S. News
State DOT awards $48M contract for NE Ga. road project
The state Department of Transportation has awarded a $47.8 million contract for nine miles of work on a northeast Georgia road.
9:37AM ( 1 year ago )
Business News
Grass fire impacts rush hour traffic on 985
Rush hour traffic on I-985 was slowed by a grass fire Wednesay afternoon with one lane closed while firefighters fought the blaze.
10:19PM ( 1 year ago )
Hall County conviction, sentencing to be reviewed by SCOGA
The State Supreme Court has agreed to hear the appeal of a Hall County man when they reconvene in January.
2:37PM ( 1 year ago )
Maysville man dies from Banks County wreck
The Georgia State Patrol reports that alcohol and/or drugs were factors a single-vehicle wreck that claimed the life of a Maysville man in Banks County Tuesday night.
11:07AM ( 1 year ago )
Local/State News
GOP leader regrets talk to white supremacists; party leaders rally around him
House Republican leaders rallied around one of their own, Whip Steve Scalise, on Tuesday after he said he regrets speaking 12 years ago to a white supremacist organization and condemns the views of such groups.
6:08PM ( 1 year ago )
Conviction of Putin foe sets off protest in Moscow
President Vladimir Putin's chief political foe was convicted along with his brother on Tuesday in a fraud case widely seen as a vendetta by the Kremlin, triggering one of Russia's boldest anti-government demonstrations in years.
6:03PM ( 1 year ago )
More Georgians signing up for health insurance
A federal report says more Georgians have selected health insurance plans through a federally facilitated marketplace.
4:16PM ( 1 year ago )
Politics
New details about the possible effects of the Zika virus on the fetal brain are emerging
WASHINGTON (AP) — New details about the possible effects of the Zika virus on the fetal brain emerged Wednesday as U.S. health officials say mosquito eradication here and abroad is key to protect preg...
6:22PM ( 1 day ago )
President Barack Obama is asking Congress for more than $1.8 billion in emergency funding to help fight the Zika virus
WASHINGTON (AP) — President Barack Obama is asking Congress for more than $1.8 billion in emergency funding to fight the Zika virus and the mosquitoes that spread it here and abroad, but says "there s...
10:40PM ( 3 days ago )
Search for Missouri couple wanted for crimes across the South, including Ga., ends with one suspect dead and the other wounded
A weeklong search for a Missouri couple wanted in a series of robberies and abductions across the South ended with one suspect dead and the other wounded Friday, after authorities say they chased the pair across the highway and through a rural neighborhood and exchanged gunfire with them in Florida's Panhandle.
By The Associated Press
9:57PM ( 6 days ago )
Cheap oil will be sticking around for a while, buoying consumers, frustrating oil producers
Cheap oil will be sticking around for a while.That reality is wreaking havoc and causing uncertainty for some governments and businesses, while creating financial windfalls for others. Less expensive...
6:18PM ( 1 week ago )
Cruz (R) expected to claim conservative Iowa caucus victory, with Clinton (D) and Sanders (D) deadlocked among liberal vote
Texas Sen. Ted Cruz swept to victory in Iowa's Republican caucuses Monday, overcoming billionaire Donald Trump and Florida Sen. Marco Rubio. Among Democrats, Hillary Clinton and Bernie Sanders were deadlocked in a tight race.
By The Associated Press
10:55PM ( 1 week ago )