By Wallace Witkowski and Anora Mahmudova, MarketWatch
Crude prices also swing higher
SAN FRANCISCO (MarketWatch)--U.S. stocks swung sharply to gains
Wednesday after the Federal Open Market Committee removed the word
"patient" from its policy statement, but indicated a slower pace of
rate hikes.
The S&P 500 (SPX) jumped 22 points, or 1.1%, to 2,097, with
all 10 sectors in the black, led by energy and utilities. Just
before the statement, the S&P 500 was down 8 points.
The Dow Jones Industrial Average (DJI) surged 185 points, or 1%,
to 18,034, after trading down 101 points just before the
statement's release. It was down more than 120 points, after
shedding more than 100 points near the open. Twenty-four of the
Dow's 30 components were trading higher, with Chevron Corp. (CVX)
among the biggest losers.
The Nasdaq Composite (RIXF) surged 41 points, or 0.8%, to 3,979,
after being down about 17 points before the statement.
The Fed's "dot plot," or survey of what Fed officials think
rates should be at certain times, indicated a slower rise in rates
(http://www.marketwatch.com/story/fed-takes-step-to-rate-hike-but-scales-back-intended-pace-2015-03-18),
as the median dot for the end of 2015 declined to 0.625% from
1.125%.
Bob Baur, chief global economist at Principal Global Investors,
said the Fed wants to maintain the most flexibility as it attempts
to lift rates.
The Fed wants "some flexibility to be able to raise rates fairly
soon," Baur noted. "But they don't want to be locked in," to a
specific timetable, he added.
Fed Chairwoman Janet Yellen said at a news conference the
central bank has not determined timing on rate increases.
Follow along on MarketWatch's live blog of the Fed decision and
Yellen news conference
(http://blogs.marketwatch.com/capitolreport/2015/03/18/live-blog-and-video-of-the-federal-reserve-decision-and-janet-yellen-press-conference/).
(http://www.marketwatch.com/story/heres-what-to-watch-from-the-fed-this-week-2015-03-16)
For two officials, a 'Field of Dreams' moment on FOMC
(http://www.marketwatch.com/story/for-two-officials-a-field-of-dreams-moment-on-fomc-2015-03-17)
Stocks to Watch: Oracle Corp.(ORCL) shares jumped after the
company posted flat earnings, but raised its dividend
(http://www.marketwatch.com/story/oracle-adobe-burlington-stores-earnings-in-focus-2015-03-17).
Adobe Systems Inc.(ADBE) shares slumped after the company said
subscriber growth badly missed expectations.
Quiksilver Inc.(ZQK) jumped 22% after the outdoor sports apparel
maker reported a narrower-than-expected loss
(http://www.marketwatch.com/story/quiksilvers-stock-rallies-after-narrower-than-expected-loss-2015-03-17)
late Tuesday.
FedEx Corp.(FDX) shares fell after the company reported a
better-than-expected fiscal third-quarter profit
(http://www.marketwatch.com/story/fedex-beats-profit-expectations-but-provides-a-downbeat-outlook-2015-03-18)
but missed revenue estimates.
Guess Inc.(GES) and Williams-Sonoma Inc.(WSM) also are expected
to report quarterly results.
Kraft Foods Group Inc.(KRFT) shares fell after the company said
it has recalled 242,000 cases of Kraft Macaroni & Cheese Dinner
boxes
(http://www.marketwatch.com/story/kraft-recalls-242000-cases-of-mac-cheese-dinners-2015-03-18),
saying specific products could contain small metal pieces.
Read more about stock action in the Movers & Shakers column
(http://www.marketwatch.com/story/fedex-general-mills-williams-sonoma-earnings-in-focus-2015-03-18).
Other markets: European stocks reversed earlier losses and moved
higher. The dollar (DXY) declined as well, gold was slightly
higher, and U.S. crude prices swung to a gain
(http://www.marketwatch.com/storyno-meta-for-guid) following
pressure from the American Petroleum Institute late Tuesday posting
a much sharper-than-expected rise in crude supplies than expected
(http://www.marketwatch.com/story/api-data-show-105-mln-barrel-rise-in-us-crude-supply-2015-03-17).
April crude (CLJ5) was last up about 80 cents to $44.13 a
barrel.
(ESM5)In Asia, the Shanghai Composite
(http://www.marketwatch.com/story/asian-shares-mixed-china-gains-on-stimulus-hopes-2015-03-18)
rallied 2.1% to a near seven-year high.
-- Barbara Kollmeyer contributed to this article
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