By Daniel Strumpf
U.S. stock futures fell on Wednesday after a disappointing
reading on U.S. economic growth, and as investors looked ahead to
the Federal Reserve's statement on monetary policy.
Futures on the S&P 500 index lost eight points, or 0.4%, to
2104. E-mini Dow futures declined 90 points, or 0.5%, to 17968.
E-mini Nasdaq-100 futures lost 23 points, or 0.5%, to 4494. Changes
in stock futures don't always accurately predict moves in the stock
market after the opening bell.
The early declines followed modest gains in stocks on Tuesday,
with the Dow rising 0.4% and the S&P 500 advancing 0.3%.
Dragging down stock futures was a disappointing reading on U.S.
gross domestic product, which grew at a 0.2% pace in the first
quarter, the Commerce Department reported early Wednesday. The
reading was below expectations, and is the latest report to suggest
a recent downshift in the U.S. economy. Economists surveyed by The
Wall Street Journal expect GDP to grow by 1%. Growth clocked in at
2.2% in the fourth quarter.
U.S. economic data has been weak of late, contributing to a
rockier stock market this year, said Kevin Kelly, chief investment
officer at Recon Capital Partners. "The economic numbers certainly
have been damaged, and that story that we're doing so well is not
as intact," Mr. Kelly said. "You can see that in the market action
this year, and you can see that in the earnings."
Mr. Kelly said he remained invested in shares of large, dominant
technology companies. He said he boosted his stake in Google Inc.
earlier this year.
The Federal Reserve's policy-making committee will wrap up its
two-day meeting this afternoon. The central bank is due to release
its statement on monetary policy at 2 p.m. ET.
Investors will pore over the Fed's language for clues on the
pace of interest-rate increases--widely expected in the months
ahead. Chairwoman Janet Yellen won't hold a news conference
following the statement.
Earnings reports were a mixed bag early Wednesday. Shares of
Wynn Resorts Ltd. fell 11% in premarket trading after the casino
operator said late Tuesday that it swung to a quarterly loss.
Shares of Akamai Technologies Inc. fell 4% premarket after the
cloud-computing service firm reported first-quarter results that
fell short of the company's own forecast.
Northrop Grumman Corp. shares rose 2.1% after the defense
contractor said first-quarter profit fell 19% but results topped
expectations.
Stocks fell in Europe, with Germany's DAX down 0.5%. France's
CAC 40 lost 0.6%, while the Stoxx Europe 600 index shed 0.5%.
In commodities markets, crude-oil futures lost 0.5% to $56.77 a
barrel. Gold futures lost 0.5% to $1207.60 an ounce.
The yield on the 10-year Treasury note rose to 2.035% as prices
fell.
Write to Daniel Strumpf at daniel.strumpf@wsj.com
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