NEW YORK—Major U.S. stock indexes slipped in afternoon trading Wednesday as investors waited for word from the Federal Reserve and mulled over a mixed batch of corporate earnings results.
KEEPING SCORE: The Standard & Poor’s 500 index fell four points, or 0.2 percent, to 1,980 as of 1:19 p.m. Eastern time. The Dow Jones industrial average fell 22 points, or 0.1 percent, to 16,983. The Nasdaq composite fell 25 points, or 0.6 percent, to 4,539.
FACEPLANT: Facebook lost 6 percent after its chief financial officer said that expenses for the social networking giant could increase by as much as 75 percent next year as it ramps up spending on investments. Its stock dropped $4.75 to $75.99.
EXPLOSION IN THE SKY: Orbital Sciences Corporation sank following news that its Antares rocket exploded moments after lifting off from its launch pad on Tuesday. The rocket was carrying a supply ship for astronauts on the International Space Station, part of Orbital’s contract with NASA. Orbital’s stock plunged $4.55, or 15 percent, to $25.81.
FED WATCHING: Investors around the world are looking ahead to Wednesday’s announcement from the Fed’s policymaking committee for insight into when the central bank might start raising interest rates. The Fed is also winding down its $4 trillion bond-buying program, known as quantitative easing, or QE for short. Some question whether the U.S. economy and stock market will flounder without the Fed’s stimulus program.
LONG VIEW: Marty Leclerc, chief investment officer at Barrack Yard Advisors, said that history suggests the market should be able to handle an interest rate increase. “The stock market typically peaks more than two years after the first Fed-funds rate hike,” he said. “So if you think the ball game is over for the bull-market run, you’re saying this time is going to be different.”
IN THE GAME: Videogame maker Electronic Arts rose $1.57, or 4 percent, to $39.05 after its earnings came in ahead of analysts’ estimates and it raised its profit projections for the year. Sales of FIFA 14, a soccer game, and Titanfall, a first-person shooter game, helped results.
PROFITS UP: Solid earnings from Caterpillar, Microsoft and other big companies have helped the market recover from a deep slide earlier this month. Nearly half of the big companies in the S&P 500 index have turned in third-quarter results, and more than seven out of 10 have trumped analysts’ targets, according to S&P Capital IQ. Earnings are on track to rise 6 percent for the third quarter.
BOUNCED BACK: The S&P 500 index is now up half a percent for the month of October. The benchmark index had slumped as much as 6 percent on October 15, as a host of concerns sent markets tumbling.
EUROPE: Germany’s DAX rose 0.2 percent. The CAC-40 in Paris was flat and Britain’s FTSE 100 rose 0.8 percent.
ASIA'S DAY: In Asia, industrial output figures showed Japan’s recovery remains on track, adding to market optimism. Tokyo’s Nikkei, the benchmark for the region’s biggest stock market, picked up 1.5 percent. South Korea’s Kospi gained 1.8 percent. Hong Kong’s Hang Seng added 1.3 percent.
OIL: Benchmark U.S. crude rose $1 to $82.41 a barrel on the New York Mercantile Exchange.
CURRENCIES, BONDS: The dollar was little changed at 108.11 yen, as was the euro, which hovered around $1.2735. U.S. government bond prices fell. The yield on the 10-year Treasury note rose to 2.32 percent.
From The Associated Press
