By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
Energy stocks sell off as oil slide resumes
NEW YORK (MarketWatch) -- U.S. stocks pulled back after the
Federal Reserve's policy-making committee reiterated it plans to
remain patient and watch the data as it decides when to raise
interest rates.
The Fed gave no sign that it is wavering on hiking interest
rates sometime in the second half of 2015. The U.S. central bank
was upbeat about the real economy, while the policymakers repeated
that they think inflation will move back to the 2% target after
being pushed down by transitory factors.
The Nasdaq Composite (RIXF) slipped 0.2% to 4,673, despite big
gains in Apple, its heaviest-weighted stock. Apple's earnings
results surprised even the most bullish analysts as the tech giant
reported $18 billion profit in the latest quarter.
The S&P 500 (SPX) lost 0.6% to 2,018, as big gains in the
tech sector were offset by even bigger losses in energy stocks.
The Dow Jones Industrial Average (DJI) fell 0.3% to 17,335.
Boeing Co (BA) was the top gainer, while Chevron (CVX) and Exxon
Mobil Corp (XOM) were the laggards.
Dan Greenhaus, chief strategist at BTIG, in emailed comments
said the statement "was largely in line with expectations, largely
a non-event and largely maintains the status quo narrative."
While reaction in the stock market was muted, Treasurys rallied
after the announcement. The yield on 10-year Treasury notes, which
moves inversely to prices dropped 7 basis points to 1.75%.
Goldman Sachs and others expect the first hike in short-term
interest rates by September. But Ellen Zentner, an economist at
Morgan Stanley, said Tuesday that she doesn't expect a Fed hike
until March 2016, partly because the downward pressure on inflation
is stronger than expected.
A strong dollar, which has been cutting into corporate earnings,
and weak oil prices have investors hoping the Fed will delay that
hike, and they will be looking for a signal to support that from
the statement.
Apple earnings: Apple shares jumped 7% after the company
reported another record for its flagship iPhone, with 74.5 million
phones sold in the fiscal first quarter. Profit rose 38% to a
record high.
Also read: This is what Apple analysts are worried about
Yahoo, Boeing in focus: Shares of Boeing (BA) gained after the
company's fourth-quarter earnings beat forecasts.
Yahoo Inc. (YHOO) jumped after the Internet search engine late
Tuesday said it would spin off its Alibaba Group Holding Ltd.
(BABA) stake into a separate publicly traded company.
U.S. Steel Corp. (X) jumped after the steel producer's earnings
topped Wall Street estimates.
Abiomed Inc. (ABMD) surged 32% after the medical device maker
posted earnings that blew out Wall Street estimates.
On the downside, Ethan Allen Interiors Inc. dropped sharply
after releasing weaker-than-expected results from its holiday
quarter.
Energy companies were selling off as oil prices fell more than
2%. Among S&P 500 components, Denbury Resources (DNR) and Cabot
OIl & Gas Corp (COG) were down more than 7%.
Shake Shack Inc. (SHAK) raised the terms for its initial public
offering and said it would offer 5.75 million shares to be priced
at $17-$19 a share.
Overseas markets: Europe stocks were mixed, with Greece
suffering from another selloff after Prime Minister Alexis Tsipras
stressed he will push for debt relief from the country's
international creditors.
The Nikkei 225 index rose to a fresh one-month high.
Crude-oil prices (CLH5) fell $1 to $45.20 a barrel, as another
investment bank downgraded its forecast for the commodity. Barclays
cut its forecasts for WTI crude to $42 a barrel for 2015 from $66
and $57 a barrel for 2016. For Brent crude, Barclays cut its
forecast to $44 a barrel for 2015 from $72 and forecast $60 for
2015.
Gold prices (GCG5) drifted lower ahead of the FOMC meeting.
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