The Federal Reserve's dovish monetary policy drove down the Dow and S&P 500 Wednesday. Financial stocks led the decliners. The Dow lost half a percent to 25,745; the S&P down a quarter percent to 2824; the Nasdaq flat at 7728. Federal Reserve policymakers held interest rates steady and indicated it sees no further rate hikes this year.
Thomson Reuters Stock Buzz analyst Terence Gabriel:
SOUNDBITE: THOMSON REUTERS STOCK BUZZ ANALYST, TERENCE GABRIEL (ENGLISH) SAYING:
"Well there may be some concern, actually, that even though the Federal Reserve is abandoning its projection for interest rate hikes this year, that they are also recognizing the slowing economic conditions that are also out there. So that in itself becomes another issue that the market then has to potentially worry about here, which is what a slowing economy will mean for earnings moving forward."
(Fed rate decision goes here)
Possible turbulence up ahead. FedEx shares dropped. The package delivery company cut its full-year profit forecast for the second time in three months. Package couriers are seen as bellwethers for the global economy. Rival UPS also fell in sympathy.
Johnson & Johnson shares declined after getting warning letters. The FDA said a J&J unit and Sientra had failed to comply with post-approval evaluation requirements for their breast implant products.
General Mills investors had something to cheer about. Shares bolted higher after the maker of Cheerios and other cereals raised its full-year forecast.