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.
Grafico Indice FTSE 100

Da Feb 2024 a Mar 2024 Clicca qui per i Grafici di FTSE 100
Grafico Indice FTSE 100

Da Mar 2023 a Mar 2024 Clicca qui per i Grafici di FTSE 100