By Sara Sjolin and Mark DeCambre, MarketWatch
Dollar flat as investors await Federal Reserve call
U.S. stock benchmarks switched between small gains and losses
Wednesday morning as investors traded skittishly ahead of the
Federal Reserve's coming monetary-policy update.
Although Wall Street isn't expecting any change to rates,
investors will be anticipating clarity on the Fed's projection for
futures rates and clarity on its $4.5 trillion asset-portfolio
unwind.
The Dow Jones Industrial Average were up 4 points, or less than
0.1%, at 22,375, while those for the S&P 500 index tacked on 2
points, or 01%, at 2,505, touching a fresh intraday day record at
2,508.85. The Nasdaq Composite Index , meanwhile, was little
changed at 6,464.
The subdued trading environment early comes after all three main
benchmark posted small gains and ended at all-time highs on Tuesday
(http://www.marketwatch.com/story/us-stocks-aim-for-fresh-records-as-fed-meeting-steals-focus-2017-09-19).
The Dow average climbed 0.2%, while the S&P 500 and Nasdaq
Composite Index both ended 0.1% higher.
"Financial markets are consolidating this morning, with all eyes
on the Fed as the [Federal Open Market Committee] conclude their
two-day meeting with the announcement of monetary policy," said
Richard Perry, market analyst at Hantec Markets, said in a
note.
The wait for Fed news also comes as investors gear up for
third-quarter results at the end of the month, which could provide
further direction for markets
"To me the muted markets of the last few days are mainly a
result of a lack of new market moving news. We're in between
[third-quarter] earnings seasons so corporate news flow is light,"
said chief market strategist at CMC Markets.
Read:Why stock market investors shouldn't sweat a shrinking Fed
balance sheet
(http://www.marketwatch.com/story/why-stock-market-investors-shouldnt-sweat-a-shrinking-fed-balance-sheet-2017-09-19)
The announcement is due at 2 p.m. Eastern Time, followed by a
news conference with Chairwoman Janet Yellen at 2:30 p.m.
Eastern.
Several central bank officials already wanted to start winding
down the Fed's $4.5 trillion portfolio of government securities in
July, but the majority wanted to hold until a later date. Traders
now expect the FOMC on Wednesday to reveal details on a
balance-sheet reduction
(http://www.marketwatch.com/story/feds-balance-sheet-unwind-will-be-moment-of-truth-for-financial-markets-2017-09-18)
that will start in October.
"Any announcement that balance-sheet normalization will begin
shortly should have only a relatively muted impact on markets,
given that the market largely expects it," said analysts at
Rabobank in a note.
"We therefore believe that any dollar strength as a result of
the announcement should be limited," they added.
The dollar traded lower against most other currencies ahead of
the announcement. The ICE Dollar Index was flat at 91.753, trying
to snap a two-day skid.
In other economic news on Wednesday, a reading on existing-home
sales for August is due at 10 a.m. Eastern Time. See:MarketWatch's
economic calendar
(http://www.marketwatch.com/economy-politics/calendars/economic)
Stock movers: Shares of General Mills Inc.(GIS) slid 8.3% after
the food company, which brands include Cheerios, Haagen-Dazs and
Betty Crocker, missed profit and sales expectations
(http://www.marketwatch.com/story/general-mills-stock-tumbles-after-profit-and-sales-miss-2017-09-20).
Alnylam Pharmaceuticals Inc. (ALNY) soared 32% after positive
results in a late-stage trial
(http://www.marketwatch.com/story/sanofi-alnylam-report-positive-results-from-late-stage-trial-of-hattr-amyloidosis-treatment-2017-09-20).
Shares of American Outdoor Brands Corp.(AOBC) slumped 1.5%%,
despite reports late Tuesday that President Donald Trump will ease
rules on gun exports.
Bed Bath & Beyond Inc.(BBBY) slumped more than 16% ahead of
the bell after the retailer late on Tuesday released earnings that
widely missed forecasts
(http://www.marketwatch.com/story/bed-bath-beyond-earnings-miss-widely-stock-halted-2017-09-19).
FedEx Corp.(FDX) added 0.7% after the logistics company late
Tuesday reported earnings below forecasts
(http://www.marketwatch.com/story/fedex-shares-down-after-earnings-company-pins-miss-on-cyberattack-hurricane-harvey-2017-09-19),
saying the quarter offered "significantly operational challenges"
due to a cyberattack and Hurricane Harvey.
Microsoft Corp. (MSFT) slipped less than 0.1%, even as the
software major late Tuesday increased its dividend to 42 cents a
share
(http://www.marketwatch.com/story/microsoft-hikes-quarterly-dividend-announces-changes-to-board-of-directors-2017-09-19).
Other markets: Stocks in Europe were mostly higher, although the
U.K.'s FTSE 100 index
(http://www.marketwatch.com/story/ftse-100-edges-up-as-fed-decision-takes-center-stage-2017-09-20)underperformed
due to a rise in the pound. Sterling strengthened after U.K. retail
sales for August showed a bigger rise than expected
(http://www.marketwatch.com/story/uk-retail-sales-rise-faster-than-expected-2017-09-20).
Asian stocks closed mixed
(http://www.marketwatch.com/story/asian-markets-press-pause-ahead-of-fed-announcement-2017-09-19)
as traders there remained cautious ahead of the Fed call.
Crude-oil prices rose firmly, while metals gained across the
board.
(END) Dow Jones Newswires
September 20, 2017 09:46 ET (13:46 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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