A trader works on the floor of the New York Stock Exchange (NYSE) in Manhattan, New York City, USA, August 9, 2021. REUTERS / Andrew Kelly / File Photo
- All eyes on the Fed’s policy statement at 2 p.m. ET
- Lyft soars as the company paves a way out of the pandemic
- Activision disabled due to change in leadership, delays in launching video games
- Indices: price loss 0.32%, S&P slips 0.15%, Nasdaq rises 0.05%
Nov. 3 (Reuters) – U.S. stock indices fell on Wednesday as investors looked to the widely anticipated move by the Federal Reserve to signal the withdrawal of its support from the pandemic-era, while Activision Blizzard faced a dismal outlook and a gloomy outlook and Change of leadership slipped.
Five of the top 11 S&P sectors fell in early trading, energy <.SPNY> and industrials (.SPLRCI) the biggest declines. Consumer Discretionary (.SPLRCD) stocks outperformed. The banking sub-index (.SPXBK) lost 0.5%.
The Federal Reserve is likely to announce the reduction of its $ 120 billion monthly purchase program in its policy statement due at 2 p.m. ET (1800 GMT). Continue reading
“The expansion is largely priced into the markets right now as the Fed has been telegraphing its intent to expand for several months,” said Danielle DiMartino Booth, CEO and chief strategist of Quill Intelligence in Dallas, Texas.
The statement will be followed by Chairman Jerome Powell’s press conference at which market participants will closely monitor their views on inflation and the path of rate hikes.
“We don’t expect them to fix their rate hike plans for the time being … is more concerned about inflation,” said Sam Stovall, chief investment strategist at CFRA Research in New York.
Wall Street has largely dismissed concerns about mounting price pressures and mixed economic growth, fueled by an excellent reporting season in the third quarter and bullish commentary on future growth that pushed US stocks to record highs this week.
Capri Holdings Ltd (CPRI.N) rose 13.0% after the owner of Michael Kors raised its annual earnings forecast over Wall Street estimates. The outlook also added Tapestry Inc (TPR.N) shares by 5.6%. Continue reading
T-Mobile US (TMUS.O) was up 5.9% after the US wireless operator beat third-quarter estimates for growth in monthly paying phone subscribers.
Lyft Inc (LYFT.O) was up 9.0% after the amusement ride company announced adjusted earnings for the third quarter. Continue reading
At 10:22 a.m. ET, the Dow Jones Industrial Average (.DJI) fell 114.93 points, or 0.32%, to 35,937.70, and the S&P 500 (.SPX) fell 7.10 points, or 0.15% 4,623.55 and the Nasdaq The Composite (.IXIC) rose 7.36 points, or 0.05%, to 15,656.96.
Meanwhile, data showed that U.S. private employers maintained a solid hiring pace in October, while levels of U.S. service industry activity rose to record highs in October, likely as declining COVID-19 cases fueled demand. Continue reading
Activision Blizzard Inc (ATVI.O) slumped 14.5% to weigh the hardest on the S&P 500 and Nasdaq after the video game publisher postponed the release of two highly anticipated titles as its co-boss Jen Oneal decided to step down from her role. Continue reading
Deere & Co (DE.N) lost 4.9% as the tractor maker’s workers wanted to continue their three-week-old strike after voting to reject a second contract. Continue reading
Increasing issues outpaced declining issues by a ratio of 1.22 to 1 on the NYSE and a ratio of 1.33 to 1 on the Nasdaq.
The S&P index made 34 new 52-week highs and three new lows, while the Nasdaq made 110 new highs and 30 new lows.
Reporting by Devik Jain and Shashank Nayar in Bengaluru; Adaptation by Maju Samuel
Our Standards: The Thomson Reuters Trust Principles.
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