U.S. stock indexes add to prior day’s fall FOM
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U.S. stock indexes add to prior day’s fall
FOMC monetary-policy statement contains nothing unexpected
NEW YORK (MarketWatch) — U.S. stocks fell mildly Wednesday after an attempted rebound from the prior day’s bruising faltered, with gains that came on data signaling an improved housing market fading.
Earnings from Dow Chemical Co. also helped lift sentiment, but equities wavered mostly lower after the 2:15 p.m. release of the Federal Open Market Committee’s policy decision, which had the Fed sticking with its monthly purchases of $40 billion in mortgage-backed securities until the labor market shows substantial improvement.
“With the economy as weak as it’s been, the Fed is providing some support for a real estate market that is starting to show some strength; that money has to flow somewhere, and some of that should go to asset prices,”” said Bruce McCain, chief investment strategist at Key Private Bank.
“The flip side is what we saw yesterday; clearly it has not been the best of earnings seasons. We could give way to some sort of a broader correction, as we still have not seen anything significant that way, said McCain.
Other than noting a slight pickup in inflation, the central-bank statement “was a non-event as the Fed took a breather after their moves in September,” emailed Peter Boockvar, equity strategist at Miller Tabak.
http://www.marketwatch.com/story/us-stocks-st...atest_news
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