(MENAFN– ecpulse)
Wall Street closed the day in red just after that the FOMC release as it showed that the Federal Reserve maintained its monthly $85 billion of bond purchases yet unlike the prior meetings this time the Fed affirmed that they might reduce their $85 billion in monthly bond purchases “in coming months” as the economy improves.
Which brought policy makers to affirm that: “the data would prove consistent with the Committee’s outlook for ongoing improvement in labor market conditions and would thus warrant trimming the pace of purchases in coming months”
On the other hand today report released today is retail sales, which showed 0.4 percent advance in the reading without auto dealers in October from no change in September, exceeding median forecast. Sales excluding gasoline rose 0.5 percent.
Among the 13 categories included in calculations, nine showed advance in September, thanks to an 1.3 percent gain in sales at automobile dealers, as well as 0.9 percent rise at both grocery stores and restaurants.
Now J.C. Penney Co. jumped 8 percent and Yahoo! Inc. advanced 1.9 percent after the owner of the largest U.S. Internet portal boosted its stock-buyback plan by $5 billion.
Plus Deere & Co. rose 3 percent as it forecast better-than-estimated annual earnings on rising demand for construction and forestry machinery whereas Lowe’s Cos., the second-biggest home improvement retailer, slipped 4.3 percent on lower than projected profit.
On the other hand broadest measure of inflation in the United States, which reflects the cost of living, plunged for the first time in six months in October on cheaper energy, clothing and new cars, helping the Fed to stay the course on its monthly bond purchases.
Consumer prices slipped 0.1 percent last month after gaining 0.2 percent in September, compared to projections of 0.0 percent, where energy costs plummeted 1.7 percent from a month earlier, the most in six months.
Accordingly The S&P 500 shed 0.36 percent to 1,781.37 at 16:15 a.m. in New York.
As for the Dow Jones Industrial Average plunged 66.21 points, or 0.41 percent, to 15,900.80 while that the Nasdaq fell by 0.26% to 3921.27 at 16:15 p.m. in New York
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