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U.S. stocks mixed ahead of FOMC; Dow Jones down 0.11%

Published 01/26/2011, 09:55 AM
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Investing.com – U.S. stocks were mixed after the open on Wednesday, as investors remained cautious ahead of the release of the Federal Reserve’s rate statement, while downbeat financial results from Boeing weighed on sentiment.  

During early U.S. trade, the Dow Jones Industrial Average shed 0.11%, the S&P 500 index climbed 0.09%, while the Nasdaq Composite index was down 0.05%.

Shares in the world’s largest aircraft manufacturer Boeing tumbled 3.97% after its fourth quarter profit fell by 8% to USD1.16 billion, as delays to its new 787 Dreamliner weighed on results. The company said fourth quarter revenue totaled USD16.55 billion, falling short of market expectations for revenue of USD16.97 billion.

Elsewhere, search-engine giant Yahoo saw shares drop 3.03% after it said it would shed nearly 1% of its global work force, a day after reporting lower-than-expected fourth quarter earnings.

Google, meanwhile, saw shares gain 0.54% after the company said it would hire more than 6,000 employees in 2011.

Meanwhile, shares in the largest U.S. insurer Wellpoint dropped 0.89% after it reported an 80% drop in fourth quarter net income, falling to USD548.8 million, compared to USD2.75 billion a year earlier. Revenue in the quarter fell by 4% to USD13.44 billion. 

Elsewhere, the third largest U.S. oil producer ConocoPhillips saw shares rise 1.35% after it posted a 54% jump in fourth quarter profit. The company said that revenue in the quarter rose by 17% to USD53.2 billion, as the recovering global economy improved demand for crude.

Also Wednesday, shares in the world’s largest automaker Toyota slumped 1.43% after the company announced a recall of approximately 1.7 million vehicles worldwide due to faulty fuel tanks.

Meanwhile, shares in the largest U.S. wireless service provider Verizon added 0.87% after the stock was upgraded by Goldman Sachs and added to its ‘Conviction Buy’ list. 

Across the Atlantic, European stock markets were broadly higher. The EURO STOXX 50 climbed 0.41%, France’s CAC 40 jumped 0.71%, Germany's DAX surged 0.98%, while Britain's FTSE 100 rallied 1.01%.

Later in the day, the Federal Reserve was to announce its Federal Funds Rate which will coincide with the publication of the bank’s interest rate statement. The country was also to publish official data on new home sales.


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