Closing Update: Stocks Shave Post-GDP Loss as Fed Lessens Rate-Hike Fears


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Wall Street ended narrowly mixed Wednesday, trimming the early losses seen when a strong Q2 GDP reading triggered worries that the Federal Reserve now has the ammunition to hike short-term rates sooner than previously expected. But nerves were calmed when the Federal Open Market Committee said it had voted near unanimously to keep rates low "for a considerable time," allowing for a slim gain for the S&P 500 and Nasdaq Composite, but another down day for the Dow Jones Industrial Average.

The Nasdaq put in a very impressive performance thanks to strong earnings from Twitter ( TWTR ) and Amgen ( AMGN ) that gave a boost to the social-media and biotech sector. This allowed the tech-heavy index to close on the plus side for the first time in five days.

Today's economic calendar kicked off with a 218,000 increase in private payrolls for July, missing estimates for a 235,000 gain. But since this was the fourth straight month that more than 200,000 jobs were added to the economy, the report from ADP was considered mostly market-friendly.

Q2 GDP generated the most interest today, especially after the economy grew at an impressive 4.0% in Q2, offsetting a revised 2.1% contraction in Q1. Coupled with a 2.0% gain in the price index, the combination of solid growth with increased price pressures erased pre-market gains, leaving most stocks in the red at the open.

Here's where the markets stand at the close:


Dow Jones Industrial Index was down 31 points (-0.2%) at 16,880

S&P 500 was up 0.12 (+0.1%) at 1,970

Nasdaq Composite Index was up 20 (+0.5%) at 4,462


FTSE 100 was down 0.50%

Nikkei 225 was up 0.18%

Hang Seng Index was up 0.37%

Shanghai China Composite Index was down 0.09%


(+) GFIG Certain assets to be acquired by CME Group ( CME )

(+) TWTR Beat earnings and revenue estimates, strong guidance

(+) GALT Company responds to criticism of NASH trial

(+) ZLTQ Beats earnings estimates, raises guidance

(+) LOCO Gets endorsement from CNBC's Jim Cramer

(+) RNG Smaller-than-expected Q2 loss, reseller pact with BT


(-) RT Disappointing Q4 results as brand transformation shows little progress

(-) PWE, PWT.TO Reviewing historical financials, will restate some results

(-) DWA Swings to a Q2 loss, misses earnings and revenue estimates

(-) UIHC Missed Q2 revenue expectations

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities
More Headlines for: AMGN , CME

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