Stocks Head Lower Early Wednesday 03/20 09:38
U.S. stocks edged lower in early trading on Wall Street Wednesday ahead of
the latest interest rate policy decision by the Federal Reserve.
NEW YORK (AP) -- U.S. stocks edged lower in early trading on Wall Street
Wednesday ahead of the latest interest rate policy decision by the Federal
Health care and technology companies led the market lower as investors
favored safer holdings in the utilities and real estate sectors. Microsoft and
Apple edged lower, dragging other technology stocks down with them.
Johnson & Johnson and UnitedHealth Group fell 1.1 percent, weighing down
their peers in the health care industry.
The market closed on a soft note Tuesday, ending a weeklong rally. The
market is still off to a roaring start to the year. The S&P 500 index is up
12.6 percent so far in 2019. That's better than the full-year gains for the
benchmark index in four of the past five years.
Investors are looking ahead to comments from the Federal Reserve after its
latest two-day meeting. The central bank has signaled that it will be "patient"
in raising interest rates as it weighs a dimmer economic picture globally.
Bond prices rose ahead of the Fed announcement. The yield on the 10-year
Treasury fell to 2.59 percent.
Investors are also digesting another snippet of information on trade talks
between the U.S. and China. White House officials are saying that top U.S.
trade and economic officials will visit China late next week for another round
of negotiations. Wall Street is hoping for a resolution to the damaging trade
war between the world's largest economies, which has made goods more costly for
companies and consumers.
KEEPING SCORE: The Dow Jones Industrial Average fell 106.2 points, or 0.4
percent, to 25,777 as of 10 a.m. The S&P 500 fell 0.3 percent and the Nasdaq
composite 0.1 percent.
DAMAGED PACKAGES: FedEx plunged after the company told investors that weak
economic growth and higher costs will continue to cut into profit and revenue.
The package delivery company's third-quarter profit fell more than expected
as it dealt with slower economic growth and weak global trade. Revenue also
fell short of forecasts. Looking ahead, the company cut its full-year profit
forecast for a second time.
RISING DOUGH: General Mills blew away profit forecasts for the third quarter
as higher prices on some of its products lifted revenue.
The maker of Cheerios, Lucky Charms and Pillsbury, has been facing tougher
competition as consumer tastes continue to shift to healthier food options. The
company has been working to build a broader mix of healthier products, along
with raising prices on certain brands.
The company now expects adjusted full-year earnings per share to be flat to
up 1 percent from last year's $3.11. Previously it forecast a decline of up to
OVERSEAS: Germany's Dax fell 1.5 percent on bad news for several key
companies. Automaker BMW projected lower profits for the year. Also, a U.S.
jury found that Bayer's Roundup weed killer contributed to a California man's
cancer. Other European indexes edged lower and Asian indexes were mixed.