By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks fluctuated in early trade
on Wednesday as investors digested a barrage of mixed economic data
and waited for the outcome of the two-day Federal Open Market
Committee meeting.
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.
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.
The S&P 500 (SPX) was 1 point higher at 1,879.80 and on
track to notch a 1.2% gain for the month.
The Dow Jones Industrial Average (DJI) was 16 points higher at
16,551.56, set to finish April with a 1.4% gain. The blue-chip
index is less than 20 points off its record close.
The Nasdaq Composite (RIXF) fell 6 points, or 0.1%, to 4,097.39.
The selloff of biotech and Internet stocks during April is set to
leave the index 1.4% lower for the month.
Follow MarketWatch's live blog of today's stock-market
action.
Quincy Krosby, market strategist at Prudential Financial says it
is not unusual for markets to be cautious ahead of the Fed
meeting.
"Investors' expectations are for tapering to continue and it is
likely the Fed will issue a boiler-plate announcement, without any
changes," Krosby said.
"While the GDP number was disappointing, it is backward looking
data, so it is unlikely to fundamentally change Yellen's view of
the economy," she 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 11% 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 4.7%, after its first-quarter earnings
topped expectations but its outlook was viewed as lackluster.
Shares of Panera Bread Co. (PNRA) fell 6.7% 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 5.1%.
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 1.2%.
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 15% 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.
More must-reads from MarketWatch:
Crashy Marc Faber: It's too late to buy U.S. stocks now
Why traders are watching the Russell 2000 and the small-cap
index's ETF this week
Bill Gross on 'erotic' sneezes and a lower long-term policy
rate
Subscribe to WSJ: http://online.wsj.com?mod=djnwires