Published: Thu, September 21, 2017
Money | By Armando Alvarado

Wall St. opens slightly lower after Fed's hawkish stance

Wall St. opens slightly lower after Fed's hawkish stance

The dollar index fell 0.01 percent, with the euro unchanged at $1.1992.

Eleven companies on the index posted a new 52-week highs, while two posted new lows. However, Japan's Nikkei 225 Index bucked the downtrend and rose by 0.2 percent.

The Dow Jones Industrial Average climbed for a sixth consecutive session, hitting another record high, while the S&P 500 touched the 2,500 benchmark in its own run to an all-time peak, shrugging off geopolitical uncertainties and downbeat US data on gains in telecommunications and financials.

"The data that has been coming out from the US has been a bit of a mixed I think it is maybe time for the Fed to take a break", said Trip Miller, managing partner at Gullane Capital Partners, who doubts the central bank will increase rates again this year.

Elsewhere, as the region's banks celebrated higher interest rates that should support profits. Several packaged food companies also declined.

"People are still, as they usually are the day before a Fed announcement, kind of in a wait-and-see mode", said Lindsey Bell, investment strategist at CFRA Research. Brent crude, used to price global oils, gave up 34 cents, or 0.6 percent, to close at $55.14 a barrel in London. Economists had expected the index to edge up by 0.2 percent.

And, the central bank, would likely to inform that it will be starting to unwind its holdings in bonds and mortgage-backed securities of about $4.2 trillion.

After the statement traders were betting on a roughly 67 per cent chance of a December hike, compared with 51 per cent minutes before, according to the CME Group's FedWatch tool.

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In the bond market, benchmark 10-year notes were last up in 3/32 price to yield 2.232 percent, from 2.243 percent on Tuesday.

The Standard & Poor's 500 index rose 2.78 points, or 0.1 percent, to 2,506.65.

Shares of Calgon Carbon soared 59.1 percent in premarket trading after Japanese chemical manufacturer Kuraray agreed to buy the carbon materials firm for $1.107 billion.

While some investors said the Fed's tone was more hawkish than expected others were happy Fed Chair Janet Yellen reiterated her stance that balance sheet reduction would be data dependent.

Seven of the 11 major S&P sectors were higher, led by a 2.14 percent gain in the telecom services sector. "The market reaction is interpreting the Fed as slightly hawkish but not too much", said Victor Jones, director of trading at TD Ameritrade in Chicago. The broader All Ordinaries index ended down 53 points or 0.9% at 5,716.70.

Many investors have been skeptical the Fed will raise rates again this year, citing subdued inflation readings and concerns around the economic toll of major summer hurricanes. Shares of Apple fell 1.7% after it admitted its latest smartwatch has connectivity problems. The big four banks slid between 0.3% and 0.9%.

Declining issues outnumbered advancers on the NYSE by 1,331 to 1,140.

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