By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- Wall Street stocks swung wildly
immediately after the release of the Federal Open Market Committee
statement on Wednesday, but moved decidedly higher.
As expected, the Fed policymakers decided to continued to trim
bond purchases by another $10 billion a month and left the key
rates at zero, despite surprisingly grim economic growth in the
first three months of the year.
The benchmark S&P 500 and the Dow Jones Industrial Average
are on track to finish April roughly where they started it, while
the Nasdaq Composite is set to record a loss.
The S&P 500 (SPX) was 3 points, or 0.3%, higher at 1,883.80
and on track to notch a 1.4% gain for the month.
The Dow Jones Industrial Average (DJI) added 29 points, or 0.2%,
to 16,564.77, and at session high surpassed the highest closing
level, reached on Dec 31, 2013. The blue-chip index is set to
finish April with a 1.5% gain.
The Nasdaq Composite (RIXF) rose 8 points, or 0.2%, to 4,112.01.
The selloff of biotech and Internet stocks during April is set to
leave the index 1.1% lower for the month.
Follow MarketWatch's live blog of today's stock-market
action.
Ahead of the opening bell, the GDP number came in much weaker
than expected, while private-sector jobs growth topped estimates.
Chicago's business gauge also jumped in April to the fastest pace
in six months.
Bernie Williams, chief investment officer at USAA Investment
Solutions, said further tapering, which will eventually run its
course, is good because it means the economy is improving.
"We expect the economy to strengthen in the second half of the
year and instead of summer 'soft patch' we think we will see a
rebound which will help markets," he added.
Growth in the U.S. economy nearly ground to a halt in the first
quarter, a bout of weakness spurred by one of the worst winters in
years. Gross domestic product rose at an annual rate of just 0.1%
from January through the end of March, the weakest performance in
three years, according to a preliminary estimate by the Commerce
Department. Economists surveyed by MarketWatch had forecast growth
to slow to a seasonally adjusted 1% from a 2.6% clip in the final
three months of 2013.
Private-sector hiring picked up in April, with employers adding
the most jobs in five months, according to data released Wednesday
morning.
Chicago PMI rebounded in April to the fastest pace in six
months, according to the Chicago business barometer released
Wednesday.
The results of the Fed's latest policy-setting meeting, in which
the central bank is once again expected to reduce its bond-buying
purchases, will be released at 2 p.m. Eastern. Read: Here's what to
expect from Fed meeting
Twitter, eBay sell off after results
Twitter (TWTR) shares are down 10% after the microblogging
company beat revenue forecasts, but disappointed with its average
monthly users tally for end-March. Read a recap of Twitter's
earnings call with analysts.
EBay (EBAY) shares fell 4.9%, after its first-quarter earnings
topped expectations but its outlook was viewed as lackluster.
Facebook, Inc (FB) shares rose 2.3% after the social-media site
introduced a new feature that allows users to log in anonymously in
order to try out new apps. Facebook Chief Executive Mark Zuckerberg
said the feature is about "giving people more power and
control."
Shares of Panera Bread Co. (PNRA) fell 7% after the company's
second-quarter outlook fell short of Wall Street estimates.
Ahead of the bell, WellPoint Inc. (WLP) reported adjusted
first-quarter earnings above expectations with EPS coming in at
$2.30, compared with estimates of $2.10. Shares rose 5.8%.
Time Warner Inc. (TWX)reported a higher profit, saying
blockbuster hit "The Lego Movie" helped the company get off to a
"strong start" for 2014. Shares added 2%.
Shares of Pepco Holdings Inc. (POM) surged 17% to $26.77 after
Exelon Corp. (EXC) said it would buy the utility firm in an
all-cash deal for $27.25 a share, valuing the company at about
$6.83 billion.
Energizer (ENR) shares jumped 14% after the firm said it would
split into two companies, one focused on household products and the
other on personal care. The split is expected to be completed in
2015.
In overseas markets, European stocks dipped after inflation rose
to 0.7% in April, but missed forecasts. In Asia, the Hong Kong Hang
Seng Index fell 1.4% on disappointing bank earnings as a May 1
holiday looms.
Russian stocks were lower after the International Monetary Fund
cut its economic growth forecast for the country and said it is in
recession.
Crude-oil (CLM4) prices were under pressure, down $1.20, or
1.2%, to $100.09 a barrel. Gold was also lower, and the dollar was
largely firmer, though it pulled back against the euro (EURUSD)
after euro-zone inflation data.
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