NEW YORK (AP) — U.S. stocks are slightly lower in midday trading Wednesday before the conclusion of a key Federal Reserve meeting. Investors are waiting to see whether policymakers signal that they are considering raising interest rates for the first time in almost a decade.
KEEPING SCORE: The Standard & Poor’s 500 index fell six points, or 0.3 percent, to 2,067 as of 12:06 p.m. Eastern time. The Dow Jones industrial average dropped 87 points, or 0.5 percent, to 17,761. The Nasdaq composite fell nine points, or 0.2 percent, to 4,927.
FED WATCH: Fed policy makers wrap up a two-day meeting later Wednesday to discuss rates and the U.S. economy. Many economists expect that the Fed will signal that it is ready to raise rates after holding them close to zero since 2008. The central bank has been saying that it will be “patient,” waiting for the economy to strengthen, before raising rates. Investors will be looking to see if that word has been removed from the Fed’s statement.
The Fed will release a statement this afternoon. That will be followed by a press conference with Fed Chair Janet Yellen at 2:30 p.m. Eastern.
THE QUOTE: “We’re in the camp that thinks the Fed is ready to raise rates this summer,” said Gary Thayer, head of macro strategy at Wells Fargo Investment Institute. “The economy has improved significantly over the past few years and no longer needs as much stimulus.”
NOT DELIVERING: FedEx slumped $4.44, or 2.5 percent, to $171.32 after the package delivery company reported earnings. While its profit jumped 50 percent, beating Wall Street expectations, FedEx’s forecast for the full year was below forecasts. Revenue edged up only slightly, missing expectations, due to lower fuel surcharges and the effects of a stronger dollar.
HEAD IN THE CLOUD: Oracle was the biggest gainer in the S&P 500. The company’s stock rose after it said late Tuesday that its software and cloud businesses gained strength in its fiscal third quarter. The software company also raised its quarterly dividend to 15 cents from 12 cents. Oracle climbed $1.09, or 2.5 percent, to $43.96.
EUROPE’S DAY: European stocks were mixed. France’s CAC 40 was little changed and Germany’s DAX fell 0.3 percent. Britain’s FTSE 100 added 1.2 percent. Stocks in Europe have surged this year as the European Central Bank has started a program of bond-buying to keep long-term interest rates low and stimulate growth in the region.
ENERGY: Benchmark U.S. crude oil continued to fall, dropping $1.17 to $42.27 a barrel on the New York Mercantile Exchange. Brent crude, the international benchmark, fell five cents to $53.46 a barrel in London.
BOND: U.S. government bond prices edged higher. The yield on the 10-year Treasury note fell to 2.03 percent from 2.08 percent on Tuesday.
CURRENCIES: The dollar weakened to 121.05 yen from 121.34 yen late Tuesday. The U.S. currency also traded slightly lower against the euro, weakening to $1.0612.
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