Forexpros – U.S. stocks edged lower on Wednesday, as investors remained cautious ahead of highly anticipated comments by the Federal Reserve later in the day amid growing hopes that the central bank will announce further stimulus measures to boost the economy.
During early U.S. trade, the Dow Jones Industrial Average fell 0.13%, the S&P 500 index declined 0.19%, while the Nasdaq Composite index eased 0.05%.
Markets were eyeing the outcome of the Fed’s policy setting meeting, amid speculation that the U.S. central bank may implement a third round of quantitative easing measures after a recent string of disappointing economic data.
Meanwhile, sentiment found mild support after Evangelos Venizelos, the head of Greece’s Pasok party, announced that a coalition government had been formed, which will allow Athens to resume negotiations with creditors on its international bailout deal.
Adobe Systems plummeted 6.45% after cutting its full-year revenue outlook on Tuesday, given that weak European demand is likely to affect sales of the recently launched versions of the company’s design software.
Also in the tech sector, chip equipment maker FSI International saw shares dive 16.44%, after forecasting a weak fourth quarter seeing as the global economic slowdown delays customer spending.
Procter & Gamble shed 0.57% as it forecast that annual earnings for its coming fiscal year would be between flat and up by a mid-single digit percentage amount, with underlying sales set to show a 2 to 4% increase.
On the upside, Jabil Circuit shares jumped 2.01% on expectations that it retained a key mobile phone customer, although it forecast fourth-quarter results below analysts’ estimates as sales stagnate.
In the financial sector, JP Morgan climbed 2.12%, after saying it sold off 65 to 70% of its losing “London Whale” position which led to a multibillion dollar loss for the U.S. lender.
Meanwhile, a Manhattan federal judge decided against the bank in a lawsuit over losses on securities backed by risky home equity loans. The ruling could potentially support claims by insurers seeking to hold banks responsible for such losses.
Other U.S. lenders added to gains, as shares in Bank of America rose 0.62% and Citigroup added 0.46%.
Elsewhere, Idenix Pharmaceuticals saw shares surge 10.46% on positive testing news for its hepatitis C drug IDX184.
Other stocks in focus included Bed Bath & Beyond and Red Hat, due to report results after the closing bell.
Across the Atlantic, European stock markets were mixed. The EURO STOXX 50 fell 0.11%, France’s CAC 40 declined 0.24%, Germany’s DAX eased up 0.05%, while Britain’s FTSE 100 added 0.23%.
During the Asian trading session, Hong Kong’s Hang Seng Index rose 0.6%, while Japan’s Nikkei 225 Index jumped 1.1%.
The Federal Reserve’s policy announcement was to be followed by a closely watched press conference with Fed Chairman Ben Bernanke, to discuss the bank’s decision.
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