clear
Wednesday May 27th, 2015 10:04PM

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 2015 AccessNorthGa.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 ( 4 months 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 ( 4 months 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 ( 4 months 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 ( 4 months 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 ( 4 months 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 ( 4 months 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 ( 4 months 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 ( 4 months 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 ( 4 months 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 ( 4 months ago )
Politics
US rejects nuclear disarmament document over Israel concerns
UNITED NATIONS (AP) — The United States on Friday blocked a global document aimed at ridding the world of nuclear weapons, saying Egypt and other states tried to "cynically manipulate" the process by...
9:33PM ( 5 days ago )
Obama again avoids calling 1915 Armenian killings 'genocide'
WASHINGTON (AP) — President Barack Obama will once again stop short of calling the 1915 massacre of Armenians a genocide, prompting anger and disappointment from those who have been pushing him to ful...
1:00PM ( 1 month ago )
Ex-NFL star Hernandez convicted of murder, sentenced to life
FALL RIVER, Mass. (AP) — Former New England Patriots star Aaron Hernandez was convicted of first-degree murder and sentenced to life in prison Wednesday for a deadly late-night shooting, sealing the d...
8:54PM ( 1 month ago )
Clinton kicks off 2016 campaign online, heads next to Iowa
WASHINGTON (AP) — Hillary Rodham Clinton jumped back into presidential politics on Sunday, making a much-awaited announcement she will again seek the White House with a promise to serve as the "champi...
7:56PM ( 1 month ago )
Hall, White, Jefferson schools recognized nationally for use of technology
Three school districts in northeast Georgia - Hall, White, and Jefferson - have received national recognition for their use use of innovative technologies. They earned top spots in the Center for Digital Education's and the National School Boards Association's 10th annual Digital School Districts Survey.
By Staff
1:00PM ( 1 month ago )