Market Commentary and Intraday News
US stocks open mostly lower as Fed meets
298 days ago
By PALLAVI GOGOI
AP Business Writer
(AP:NEW YORK) U.S. stocks opened mostly lower Tuesday ahead of a two-day policy meeting at the Federal Reserve.
Investors appear unsure over whether the Fed will act again to kick-start the economy, and when it will do so.
The Dow Jones industrial average fell 19 points to 13,054 in the first half-hour of trading. The broader S&P 500 index lost one point to 1,384 and Nasdaq edged up three points to 2,948.
The Commerce Department reported that spending by the U.S. consumer was unchanged in June, though personal income edged up 0.5 percent. That suggests there will be more pressure on the Fed to act since Americans seem to be putting their paychecks in their pockets rather than spending it.
Corporate earnings news did little to inspire investors. Aetna, the health insurance company, reported a 15 percent slump in net income as rising medical costs outweighed a gain in revenue. Archer Daniels Midland, hammered by record corn prices, reported a 25 percent drop in net income.
Among other stocks making big moves:
_ Coach, the luxury handbag maker, fell $8.67, or 14 percent, to $51.77, the biggest loss in the S&P 500 index. The company's revenue came in below analysts' forecasts because of slower sales at North American factory stores as consumers got more cautious about their spending.
_ U.S. Steel rose 87 cents, or 4.6 percent, to $19.79. Higher prices and lower costs for raw materials and energy helped the company beat Wall Street expectations despite challenging economic conditions, particularly in Europe.
_ Goodyear Tire rose 74 cents, or 7.4 percent, to $11.14. The tire company's income more than doubled in the quarter after lower costs offset a drop in tire sales and beat Wall Street expectations
_ Valero Energy rose $1.41, or 5.4 percent, to $27.49. The second quarter results from the gasoline and petroleum products maker beat Wall Street expectations after it added a plant in the U.K., which helped the company increase production.
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