November 18, 2024

Wall Street Indexes Waver as Traders Look to Fed

Mr. Bernanke is expected to discuss the job market, inflation and the prospects for economic growth following the conclusion of the Fed’s two-day policymaking meeting. He is expected to speak with reporters at an afternoon news conference.

Investors will also be watching for signs of whether the Fed plans to begin raising interest rates. The central bank’s $600 billion bond-buying program is set to end as scheduled in June.

At noon, the Dow Jones industrial average was up 21.31 points, or 0.17 percent, while the broader Standard Poor’s 500-stock index was flat. The technology heavy Nasdaq gained 1.17 points.

The DAX index in Frankfurt rose 0.83 percent, the FTSE in London gained 0.15 percent and the CAC 40 in Paris rose 0.84 percent.

In corporate news, the Boeing Company, the plane maker and military contractor, ’reported earnings that beat analysts’ expectations. The company maintained its profit and revenue expectations for the year and said it still expected to deliver its delay-prone 787 aircraft in the third quarter.

The specialty glass maker Corning said its revenue surged on strong sales of glass for flat-screen televisions, computers and mobile devices.

And Whirlpool, the appliance maker, said its net income increased by 3 percent as it sold more appliances even after raising prices to combat higher costs for raw materials.

Shares also got a lift from another round of corporate deals. Johnson Johnson said it would buy the medical device maker Synthes Inc. for $21.3 billion, and the phone company CenturyLink said it would purchase Savvis for $2.5 billion.

The Commerce Department reported that businesses increased their orders for long-lasting manufactured goods in March.

“The manufacturing sector remains the real bright spot of the economy,” said Peter Cardillo, chief market economist at the brokerage house Avalon Partners.

Bond prices fell, sending yields higher. The yield on the 10-year Treasury note rose to 3.36 percent from 3.31 percent late Tuesday. In Europe, speculation about whether Greece will restructure continues to put pressure on its bonds prices. The yields on the 10-year Greek bond surged to 15.8 percent on Wednesday. Other countries struggling with debt also saw yields rise. Portugal’s 10-year bond had a yield of 9.37 percent, while Ireland’s yield was 10.14 percent.

New data released Tuesday by Eurostat, the European Union statistics agency showed that Greece had failed to get a grip on its public finances, almost a year after it adopted sweeping austerity measures as a condition of an international rescue package.

Greece’s deficit was 10.5 percent of gross domestic product in 2010, Eurostat reported. The deficit exceeded the 9.6 percent target set last fall by the government and the European Commission, the European Union’s executive arm. Public debt swelled to 142.8 percent of G.D.P., Eurostat said.

In the Asian markets, shares closed higher after better-than-expected corporate earnings and rising consumer confidence sent Wall Street its highest levels in nearly three years.

The Nikkei 225 in Tokyo rose 1.4 percent to 9,691.84, as stocks in the country’s behemoth export sector rose.

Hong Kong’s Hang Seng index fell 0.5 percent to 23,892.84.

Oil prices were essentially unchanged Wednesday ahead of the Fed meeting. Benchmark crude for June delivery was down 4 cents at $112.17 a barrel in electronic trading in New York.

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Stocks and Bonds: Markets Turn Lower, and Oil Prices Rise Again

The Commerce Department, in its weekly report on the job market, said that 382,000 people applied for initial unemployment benefits last week, a bigger decline than estimated and down from the previous week’s 388,000. Economists say that the numbers suggested that layoffs were slowing, with Goldman Sachs economists saying that there was overall improvement in the job sector.

In addition, the nation’s major retailers reported sales for March that were up 1.7 percent, better than the marginal decline that had been expected.

Shares that had edged higher on that news in early trading declined shortly before noon on reports of the earthquake in Japan. “Right now this is going to be the dominant driver of markets, and it will have a broad impact,” Lawrence R. Creatura, a portfolio manager at Federated Investors, said of the earthquake.

The Dow Jones industrial average, which was down almost 100 points at one time, closed 17.26 points, or 0.14 percent, lower at 12,409.49. The broader Standard Poor’s 500-stock index lost 2.03 points, or 0.15 percent at 1,333.51, while the Nasdaq composite index declined 3.68 points, or 0.13 percent, at 2,796.14.

European indexes also turned lower after the quake. The DAX in Frankfurt ended 0.50 percent lower, and the CAC-40 in Paris lost 0.49 percent. The FTSE 100 in London fell 0.56 percent.

In the oil markets, crude prices rose $1.47 to close at $110.30 amid the continued turmoil in North Africa and the Middle East and a report that supply growth was slowing at a time that demand was increasing.

An analysis by the International Monetary Fund, which was released as part of its World Economic Outlook, said that oil demand in developing countries was rapidly catching up with that of developed countries at a time when production constraints were beginning to restrain major oil exporters.

In addition, “Japan has spooked the market with the idea that Japan may need more oil to replace the lost nuclear generation,” Brian M. Youngberg, an energy analyst for Edward Jones, said.

Wall Street was able to brush off other developments from abroad. As expected, the European Central Bank raised interest rates and Portugal requested a bailout.

“From the E.C.B. perspective, Trichet really did not rock the boat,” said Nick Kalivas, an analyst at MF Global, said, referring to the central bank president, Jean-Claude Trichet. “I think that is creating some stability in the market. I would not call it a bullish factor, but it is not bearish. He did not come out and pound the table.”

Richard Ross, the global technical strategist at Auerbach Grayson Company, noted that the S. P. has rallied more than 6 percent since the earthquake and tsunami in Japan on March 11.

“What is interesting is the markets are holding up extremely well,” he said, despite global events and the rising crude prices.

“All of those factors are telling you people are willing to look past the headlines for the time being,” Mr. Ross said. “There is an undercurrent of demand.”

Consumer staples and information technology shares also rose marginally.

The equipment maker, Caterpillar, declined more than 1 percent on the Dow, closing at $109.85.

Chesapeake Energy was up 2.4 percent at $34.49.

Retail stocks inched up after the March sales report. The discount warehouse Costco was nearly 4 percent higher at $77.82, and the apparel store Nordstrom was up 1.55 percent at $46.61, while Macy’s climbed 1.11 percent to $25.47. Bed, Bath Beyond rose 10.45 percent to $54.55.

The industrial conglomerate Ingersoll-Rand was up 1.25 percent to $48.42 after it raised its quarterly dividend by 71 percent, and announced a $2 billion share buyback program.

As bond prices declined, the yield on the 10-year Treasury climbed to 3.57 percent from 3.55 percent late Wednesday.

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