Mid-Morning Market Update: Markets Flat in Anticipation of FOMC Statement
Following the market opening Wednesday, the Dow traded up 0.16 percent to 13,270.18 while the NASDAQ rose 0.10 percent to 3,025.24. The S&P also rose, increasing 0.22 percent to 1,431.02.
In the spotlight today is the FOMC statement and rate decision at 12:30pm EST. While easing is expected to be continued, traders will still be keeping a keen eye on the Fed leading into its decision.
Equities Trading UP
Clearwire (NASDAQ: CLWR) saw a 4.10 percent boost in early trading to $2.79 following reports that Sprint is studying a takeover of the company.
Shares of Coinstar (NASDAQ: CSTR) saw a boost as well, rising 4.70 percent to $53.20 as it was announced that the new Redbox/Verizon venture will set its streaming service price at $8 a month and will launch this month.
Dolby Laboratories (NYSE: DLB) was among the winners too, gaining 6.03 percent to $36.25 after announcing a one time special dividend of $4.00 Tuesday.
Equities Trading DOWN
Cobalt International Energy (NYSE: CIE) dropped 9.22 percent at the open to $24.92 after the company priced its offering of $1.2 billion in senior notes Wednesday morning.
Incyte Corporation (NASDAQ: INCY) slid as well, trading down 7.29 percent to $16.54 after it was announced that Gilead Biosciences would be acquiring YM Biosciences for $510 million in cash.
Shares of Seagate Technology (NASDAQ: STX) were also down, falling 1.69 percent to $28.17 following a negative J.P. Morgan report on the company.
In commodity news, oil traded up 1.36 percent to $86.96, while gold traded up 0.43 percent to $1,715.60.
Silver traded up 0.27 percent Wednesday to $33.21.
Early this morning, European markets saw a boost linked to hopes that the United States Federal Reserve would continue its easing. The rally was lead by the Spanish Ibex, but closely followed by the Italian MIB Index.
In economic news, the import price index came in at -1.6 percent, below the expected -1.0 percent and well below the prior figure of 0.40 percent.
Today at 12:30 pm EST will be the FOMC statement and interest rate decision.
Following this at 2:00pm EST, the federal budget balance will be released, followed by a press conference by Federal Reserve chairman Ben Bernanke at 2:15 EST.
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