Wednesday 27 April 2016

Wall Street mixed...Dow, S&P 500 up; Nasdaq down

The Dow Jones Industrial Average rose by 13.08 points to close virtually flat at 17,990.32.The S&P 500 index advanced by 3.91 points, or 0.2%, to close at 2,091.70 after moving in an 11-point range through the day. 

US stock indices finished mixed on Tuesday, with the Dow and the S&P 500 posting modest gains while the Nasdaq ended lower ahead of Apple's earnings.

Investors on Wall Street remained jittery before a spate of technology sector earnings and an updated policy statement from the Federal Reserve on Wednesday.

The Dow Jones Industrial Average rose by 13.08 points to close virtually flat at 17,990.32.

The S&P 500 index advanced by 3.91 points, or 0.2%, to close at 2,091.70 after moving in an 11-point range through the day.   

The energy sector led gains, helping to offset declines in health-care and consumer-staples sectors.
The tech-heavy Nasdaq Composite Index slid 7.48 points, or 0.2%, to settle at 4,888.31.

Apple shares closed down 0.7% in regular trading, extending its losing streak to a fourth successive session. Apple was expected to report its first ever year-over-year drop in iPhone sales.

After the close of trading, Apple said that its second quarter profit fell by 22.5%, as revenue declined for the first time since 2003 and iPhone sales dropped for the first time ever.

Apple's revenue and profit for the period ended March 26 both fell short of analysts' expectations.
Meanwhile, the Fed policy makers are due to release their policy statement on Wednesday, which will offer investors important guidance about the direction of interest rates.

The US central bank, which raised interest rates in December for the first time in nearly a decade, is widely expected to leave rates unchanged at the end of a two-day meeting. 

A major question for investors is how many more times the Fed is going to lift rates in 2016.
In the day's economic data, durable-goods orders rose at a less-than-expected pace of 0.8% in March. Economists were forecasting a seasonally adjusted 2% rise. 

The S&P/Case-Shiller Home Price Index showed that home prices rose 0.2% in the three months ended February. while prices eased to a 5.4% annual gain.

A reading of consumer confidence also slipped in April, as concerns about the health of the economy increased.

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