By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks were marginally lower on
Wednesday with all attention turned to the Federal Reserve's
two-day policy meeting and a press briefing by Fed Chairwoman Janet
Yellen.
The main benchmarks paused after three days of modest gains.
The S&P 500 (SPX) was off 1 point at 1,940.81. The Dow Jones
Industrial Average (DJI) shed 35 points, or 0.2% to 16,773.53. The
Nasdaq Composite (RIXF) was off 6 points, or 0.1%, at 4,330.91.
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action.
Kate Warne, investment strategist at Edward Jones, said she
doesn't expect a change in the Fed's policy, which includes a
steady reduction in its bond-buying program.
"Even the 2.1% inflation rate is still within the Fed's target
and they are not likely to act on it. The Fed would be more
concerned not to tighten too soon, they would need more evidence of
accelerating recovery in the labor market," she added.
The Federal Open Markets Committee is to wrap up the second day
of its meeting and release a statement at 2 p.m. Eastern, followed
by a 2:30 p.m. Eastern press conference with Yellen.
The FOMC is expected to further reduce its bond-buying program
by $10 billion to $35 billion a month, and leave the Fed funds
policy target of 0% to 0.25% unchanged. Read: Fed could jolt
markets with rate-hike views
Investors will watch for any comments from Yellen that point to
when the Fed will begin to raise interest rates as the central bank
moves closer to reaching economic-data milestones, including
stabilization of inflation at 2%. Figures on Tuesday showed
inflation hitting an unadjusted 2.1% rate in May. The market will
also look for a possible reduction in the Fed's growth projection
for this year.
* In corporate news, Amazon.com Inc. Chief Executive Jeff Bezos
is expected to unveil its first smartphone at an event in Seattle,
and speculation is that the device will feature 3-D capabilities.
Amazon shares rose 1.8%.BlackBerry Ltd. shares rose 3.4% after the
company announced a partnership with Amazon on Wednesday. that
would give the smartphone maker access to Amazon's Appstore. Shares
of FedEx Corp. rose 3.8% after the parcel delivery company's
quarterly earnings and sales topped analysts' expectations.Adobe
Systems Inc. leapt 9.6% after the company late Tuesday reported
better-than-expected adjusted earnings.But La-Z-Boy Inc. shares
slid 9% as the furniture maker's fourth quarter same-store sales
fell 0.9%, compared with a 11.2% rise in the fourth quarter of last
year.ConAgra Foods Inc. shares declined 5.8% after the
packaged-food company said fiscal fourth-quarter earnings will miss
expectations, as volume in its consumer foods segment declined 7%
and its private brands unit posted weak profits.
* In overseas markets, Japanese stocks rose, outperforming other
benchmarks throughout the region. European stocks clung to thin
gains ahead of the Fed decision. Minutes from the Bank of England's
meeting earlier this month, released Wednesday, signaled policy
makers are moving closer to raising U.K. rates before year's
end.
* Among commodities, gold for August delivery ticked down $1 to
$1,270.6 an ounce. Crude oil futures added 39 cents to $106.75.
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