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Overnight Markets: Wall Street ends rally after Fed statement
by Himanshu Singh on Oct 31, 2013 at 03:12
Wall Street declined on Wednesday, with the Standard & Poor’s 500 Index snapping a four-day rally, after the Federal Reserve said it had a weaker growth outlook for the economy fuelling bets it will begin to cut stimulus.
The Dow Jones industrial average slipped 62 points, or 0.39%, to end at 15,619. The Standard & Poor's 500 Index dropped nine points, or 0.49%, to finish at 1,763. The Nasdaq Composite Index fell 22 points, or 0.55%, to close at 3,931.
Fed’s statement wasn't enough to extend a rally that has driven both the Dow and the S&P 500 to repeated record highs, including in early trading on Wednesday.
The central bank has held interest rates near zero since late 2008 and quadrupled the size of its balance sheet to more than $3.7 trillion through three rounds of bond buying.
Private-sector employers hired the fewest workers in six months in October, according to a report released on Wednesday, while the US consumer price index showed benign inflation. Both indicators supported the Fed's stimulus policy.
Expedia Inc (EXPE.O) surged 18.3% in after-hours trading after reporting its results, while Facebook (FB.O) erased an after-hours gain of more than 15% to trade down 3% after comments during the earnings call.
Starbucks Corp (SBUX.O) shares fell 2.8% after the bell because the world's biggest coffee chain gave a 2014 profit outlook that was below expectations.
In the latest batch of earnings, General Motors Co (GM.N) added 3.2% after the US automaker reported stronger-than-expected quarterly profit.
Buffalo Wild Wings (BWLD) Inc. surged 9% after raising its full-year earnings forecast.
On the negative side, Yelp Inc (YELP.N) dropped 2.6% a day after it reported a wider third-quarter loss, while Western Union (WU.N) shares slid 12.4% after the company posted a steep drop in third-quarter earnings.
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