FYI: U.S. stock rose in late trading Wednesday after the Federal Reserve lowered interest rates but signaled a divided outlook for the rest of the year.
The Dow Jones Industrial Average rose 36 points, or 0.13%, to 27147. The S&P 500 was up 0.03% and the Nasdaq Composite shed 11%.
Analysts had been widely expecting the central bank to lower its short-term benchmark rate by one-quarter percentage point. Fed officials have stressed throughout the year that they hope to safeguard the economy against rising uncertainty over the global outlook.
Traders working on the floor of the New York Stock Exchange this week. Photo: Bryan Smith/Zuma Press
In one surprise, though, officials signaled that they are divided on the prospect of further rate cuts in 2019: seven of 17 Fed officials said they anticipated one more quarter-point rate cut happening this year. That may have come as a disappointment to investors who had been widely expecting another interest-rate cut by the end of the year.
Risks like slowing global growth and the prolonged U.S.-China trade fight have taken a toll on many investors’ confidence this year. Still, U.S. stocks have held on to double-digit percentage gains, buoyed by a more upbeat view on the domestic economy.
Even with Wednesday’s declines, the S&P 500 remains up 19% for the year and not far from an all-time high.
Meanwhile, falling shares of industrial companies weighed down stock indexes, with FedEx sliding 14% after cutting its profit forecast for the year late Tuesday and citing a worsening economic backdrop. Shares of competitor United Parcel Service also lost ground, down 1.5% in recent trading.
Tech shares also underperformed the broader market, with Roku diving 14% after Comcast said it would offer a free streaming device to internet-only customers.
Energy shares were under pressure as oil prices extended a recent streak of volatility. ConocoPhillips fell 2.6% and Exxon Mobil lost 0.6%.
U.S. crude oil fell 2.2% to $58.05 a barrel Wednesday, following days of sharp swings after an attack on production facilities in Saudi Arabia.
Elsewhere, the Stoxx Europe 600 edged up less than 0.1% after a mixed session in Asia. The Shanghai Composite rose 0.3% and Japan’s Nikkei Stock Average slipped 0.2%.
Japan’s exports dropped 8.2% on year last month, a more rapid fall than expected, adding to speculation that the central bank may seek to cut interest rates deeper into negative territory
Regards,
Ted
MarketWatch:
https://www.marketwatch.com/story/us-stocks-poised-to-edge-lower-ahead-of-crucial-fed-interest-rate-decision-2019-09-18/printWSJ:
https://www.wsj.com/articles/global-stocks-pause-ahead-of-fed-decision-11568794332Bloomberg:
https://www.bloomberg.com/news/articles/2019-09-17/asia-stock-futures-rise-treasuries-advance-markets-wrap?srnd=premiumIBD:
CNBC:
https://www.cnbc.com/2019/09/18/dow-futures-down-us-federal-reserve-meeting.htmlReuters:
https://uk.reuters.com/article/us-usa-stocks/wall-street-sinks-after-fed-gives-mixed-signals-on-next-move-idUSKBN1W31GRU.K:
https://uk.reuters.com/article/uk-britain-stocks/ftse-100-lingers-in-red-as-fed-decision-looms-and-kingfisher-wanes-idUKKBN1W30QBEurope:
https://www.reuters.com/article/us-europe-stocks/european-shares-tread-water-with-fed-decision-looming-idUSKBN1W30QSAsia:
https://www.cnbc.com/2019/09/18/asia-markets-september-18-the-fed-oil-currencies.htmlBonds:
https://www.cnbc.com/2019/09/18/bonds-us-treasury-yields-fall-ahead-of-fed-decision.htmlCurrencies:
https://www.cnbc.com/2019/09/18/forex-markets-federal-reserve-saudi-arabia-oil-in-focus.htmlOil
https://www.cnbc.com/2019/09/18/oil-markets-saudi-arabia-oil-production-in-focus.htmlGold:
https://www.cnbc.com/2019/09/18/gold-markets-federal-reserve-in-focus.htmlWSJ: Markets At A Glance:
https://markets.wsj.com/usMajor ETFs % Change:
https://www.barchart.com/etfs-funds/etf-monitorSPDR's Sector Tracker:
http://www.sectorspdr.com/sectorspdr/tools/sector-trackerSPDR's Bloomberg Sector Performance Pie Chart:
https://www.bloomberg.com/markets/sectorsCurrent Futures:
https://finviz.com/futures.ashx 
