U.S. stocks fell on Wednesday on fed statements


Moscow. January 28. U.S. stocks fell at the end of trading on Wednesday, as the Federal reserve (the fed) acknowledged that there are problems in global markets and weakening growth in the US, but not refused from the course on toughening of monetary-credit policy, writes MarketWatch.

As expected, the fed left its benchmark interest rate unchanged in the target range is 0.25% to 0.5%. However the Central Bank signaled a slower raising interest rates further than previously planned. In December 2015, leaders of the fed, on average, saw an opportunity four increases in the rates in 2016, each time by 25 basis points.

Overall assessment of the economic situation in the U.S. worsened, the fed acknowledges the weakening of activity, despite the creation of new jobs, and expects to maintain low inflation.

In addition, the market was alarmed by the weak financial results of several major companies, including Apple Inc. and Boeing Co.

Prices for WTI crude oil, declining in the beginning of the main session in the U.S., grew by results of trades of 2.7%. However, for the first time since December rally in the oil market has not led to higher stock indexes.

Macroeconomic data have been positive: sales of new U.S. homes in December 2015 jumped by 10.8% compared with the previous month – up to 544 thousand houses in annualized basis.

According to revised data, in November it sold 491 thousand buildings, not 490 thousand, as previously reported. Analysts on average expected an increase in sales last month by 2% compared to the previous November level – up to 500 thousand

Boeing shares fell Wednesday by 8.9%. American aircraft manufacturing concern reduced profits and revenues in the fourth quarter of last year and gave investors a disappointing forecast for the current year.

Quotations of securities of Apple fell by 6.6%. The company reported that sales of iPhones in the last quarter grew at the slowest rate since the introduction of this device on the market in 2007.

Meanwhile, shares of biotech company Biogen Inc. rose in price by 5.2% on the back of strong quarterly reports.

The Dow Jones Industrial Average index on January 27 fell on 222,77 paragraph (1,38%) and amounted to 15944,46 item.

Standard & Poor’s 500 declined 20,68 paragraph (1,09%) – to 1882,95 item.

The Nasdaq Composite lost 99,51 points (2,18%) and amounted to 4468,17 item.