Stocks Drop Late After FOMC Offers No Taper Guidance

Michael Teague |

Stocks rallied for the majority of Wednesday’s trading session before ending the day mostly lower, as the much anticipated post-FOMC meeting statement was conspicuously devoid of clues as to when the Federal Reserve might reduce its asset purchases from $85 billion a month to $65 billion.

The Standard & Poor’s 500 was down 0.01 percent to 1,685.73, while the Dow shed 0.14 percent to close at 15,499.54, and the NASDAQ ended 0.27 percent higher at 3,626.37.

Trading began with investors reacting positively to positive economic news. The ADP’s National Employment report indicated that the private sector added 200,000 jobs in July, surpassing estimates of 180,000, while the June report was revised up from 188,000 to 198,000.

Meanwhile, the Bureau of Economic Analysis released GDP data showing that the US economy expanded at an annualized rate of 1.7 percent during the second quarter, almost doubling up on expectations of a 1 percent increase. Wednesday’s results were boosted by revisions to the way in which GDP is calculated.



All the same, most of today’s focus was centered on the Federal Open Market Committee meeting. The monthly two-day meeting concluded with a statement that said nothing about the future of the central bank’s fiscal policy, abandoning investors, analysts, and commentators alike to their own conjectures about the future of quantitative easing.

Financial stocks fared poorly on the S&P 500, led by Visa Inc. (V) , who ended the day 7.5 percent lower after a federal judge overturned an earlier Fed decision to limit debit card transaction fees. Meanwhile, internet security company Symantec (SYMC) ended the day nearly 10 percent higher after beating both top and bottom lines in its second-quarter earnings report.

On the Dow, American Express (AXP) posted the biggest lost, down nearly 2 percent, while on the NASDAQ ended the day in the positive on the strength of tech stocks, with Micron Technology (MU) up over 5 percent after completing its acquisition of memory chip manufacturer Elpida Memory Inc. Semiconductor company Marvell Technology Group Ltd. (MRVL) ended the day 3 percent higher.

Cable television provider Comcast ($CMCS) was up over 5 percent after the company's Q2 earnings beat on both top and bottom lines.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
AXP American Express Company 79.25 -1.08 -1.34 5,313,188 Trade
V Visa Inc. 91.22 -0.38 -0.41 6,888,471 Trade
SYMC Symantec Corporation 31.63 0.15 0.48 5,017,090 Trade
MRVL Marvell Technology Group Ltd. 15.02 -0.07 -0.46 8,507,189 Trade
MU Micron Technology Inc. 27.67 0.04 0.14 28,105,074 Trade
BOFKF Bank Of Kyoto Ltd Ord n/a n/a n/a 0

Comments

Emerging Growth

Naked Brand Group Inc

Naked Brand Group Inc through its wholly-owned subsidiary is engaged in manufacturing and selling of direct and wholesale men's undergarments to consumers and retailers.

Private Markets

MyForce, Inc.

As parents, we constantly worry about the safety of our loved ones. The media bombards us with incidents from across the nation school shootings, frequent assaults on campuses, and crimes…

Cross Campus

With over 500 members and operating 80,000 square feet by summer 2016, Cross Campus is one of the country’s top ten shared, collaborative office or "coworking" operators in the US.…