By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks traded in a tight range,
switching between small gains and losses on Wednesday, as investors
awaited a decision from the Federal Open Market Committee that is
expected to spell the end of its bond-buying program.
The likely end of the Fed's so-called quantitative easing, or
QE, and the slide in Facebook shares, have added a layer of
uncertainty to the market, but hasn't appeared to dampened early
buying appetite.
The S&P 500 index was flat to trading higher (SPX), while
the Nasdaq Composite Index was off slighly, as a result of a slide
in Facebook shares (RIXF). Meanwhile, the Dow industrials was
mostly unchanged (DJI).
Federal Reserve officials are expected to announce the end of
the lengthy bond-buying program. Stocks have risen as traders have
gotten bullish in anticipation that the Fed will be dovish with its
forward guidance, said Jonathan Sudaria, dealer at London Capital
Group. And therein lies the risk.
"In exchange for pulling the plug, markets will need to get
something in return or they could throw another taper tantrum," he
said in a note. Read: Fed will hold market's hand as it ends
QE3
The wrap of the Fed meeting is the only major item on the
economic calendar for Wednesday.
Tech stocks under pressure: Tech stocks weren't shaping up for a
repeat of Tuesday's gains. In larger part, Facebook is to blame.
The social media giant issued a warning about increased expenses,
which overshadowed better-than-expected earnings. Although results
in the past year have been impressive and hard to beat, tougher
comparisons and higher spending are on investors' minds, said
Pacific Crest Securities' analyst Evan Wilson, in a note.
Facebook's stock selloff weighing on tech-sector tracker
Facebook Inc. joins Twitter Inc. (TWTR) in dealing with what's
been a tough week for some Internet stocks. Twitter fell nearly 10%
on Tuesday after the social-media company's results showed slowing
growth in new users and analysts downgraded the stock. Read:
Facebook user growth may be slowing too
More stocks to watch: Hershey Co.(HSY)(HSY) shares fell as the
chocolate maker missed profit expectations and cut its outlook.
WellPoint Inc.(WLP) shares rose after it posted adjusted
earnings that beat forecasts.
Goodyear Tire & Rubber Co.(GT) stock rallied after the tire
maker reported third-quarter profit that was well above
expectations.
U.S. Steel Corp. (X) shares jumped after posting a
narrower-than-expected loss and higher revenue late Tuesday.
InvenSense Inc.(INVN) shares slid after the
micro-electro-mechnical systems designer posted second-quarter
results that fell short of market expectations. Pacific Crest
downgraded shares to sector perform from underperform.
Orbital Sciences(ORB) slumped after one of the company's rockets
exploded soon after lift off. On Sunday, Orbital announced it was
launching an Antares rocket with a Cygnus logistics spacecraft to
the International Space Station. Here's the dramatic footage.
Electronic Arts Inc.(EA) rallied after second-quarter results
topped Wall Street forecasts and the video-game publisher raised
its outlook. See Movers & Shakers for more on individual
stocks.
Other markets: European stocks rose slightly, while Asian
markets took a cue from Wall Street's strong gains on Tuesday and
powered ahead. Gold(GCZ4) inched down while the dollar(DXY) was
steady. Oil(CLZ4) logged moderate gains.
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