Off The Wire
Weak results keep S&P, Nasdaq lower ahead of Fed decision
(Reuters) - The S&P 500 and the Nasdaq edged lower on Thursday, as weak earnings reports and caution ahead of the Federal Reserve’s interest rate decision stalled a rally from the previous session, which was spurred by the outcome for midterm elections.
Qualcomm Inc (QCOM.O) dropped 7.1 percent after the chipmaker forecast sales revenue for the holiday quarter below analysts’ estimates, as it took a hit from the loss of chip sales to Apple Inc (AAPL.O).
Technology stocks .SPLRCT, that rallied the most on Wednesday, dipped 0.4 percent.
Financials were among the few gainers, with the broader market dipping after a 2 percent surge on Wednesday as investors braced for a political gridlock in Washington.
“The market is going to go into a trading range for a while...(yesterday) was relief that there wouldn’t be any severe economic changes for the next couple of years,” said Bruce Bittles, chief investment strategist at Robert W. Baird & Co in Sarasota, Florida.
“The Fed may give some indication of what they’re going to do in December, that might be holding the market back.”
The U.S. central bank, which is set to release its rate decision at 2:00 pm ET, is expected to leave interest rates unchanged, but the statement that follows could lay the ground for a fourth rate hike in December as well as next year.
At 11:39 a.m. EDT the Dow Jones Industrial Average .DJI was up 51.07 points, or 0.20 percent, at 26,231.37, the S&P 500 .SPX was down 2.56 points, or 0.09 percent, at 2,811.33 and the Nasdaq Composite .IXIC was down 25.53 points, or 0.34 percent, at 7,545.23.
Wynn Resorts fell 12.1 percent after the casino operator missed third-quarter profit estimate and warned of a slowdown in the key Macau market. That hit shares of peers Melco Resorts (MLCO.O) and MGM Resorts (MGM.N)
D.R. Horton (DHI.N) fell 6.2 percent and dragged on other homebuilders after it warned of rising home prices and higher mortgage rates weighing on demand. The PHLX Housing index .HGX fell 1.8 percent.
Perrigo Co (PRGO.N) plunged 14.9 percent after the generic drugmaker cut full-year earnings forecast on lowered expectations from its prescription pharmaceuticals.
The top gainer on the S&P 500 was TripAdvisor Inc (TRIP.O), which jumped 15.6 percent after the hotel search website reported better-than-expected third-quarter profit.
Declining issues outnumbered advancers for a 1.19-to-1 ratio on the NYSE and for a 1.12-to-1 ratio on the Nasdaq.
The S&P index recorded 33 new 52-week highs and two new lows, while the Nasdaq recorded 63 new highs and 58 new lows.
Reporting by Sruthi Shankar in Bengaluru; Editing by Arun Koyyur