A rally in U.S. shares
stalled Thursday, after equities reached a two-month high, as investors
weighed corporate earnings and prospects for higher interest rates this
year.
The Standard &
Poor’s 500 Index was little changed at 2,089.40 at 4 p.m. in New York,
near the highest level since Aug. 18, after briefly erasing losses in
the final half hour. The gauge is up 8.8 percent in October, poised for
its best month in four years, boosted by gains in commodity producers
and technology shares.
Fed officials
yesterday forecast moderate growth, and dropped a reference to global
risks in a policy statement following a two-day meeting. They also
referred to their “next meeting” on Dec. 15-16 as they discussed the
timing for raising interest rates. Traders are now pricing in a 52
percent chance of liftoff in December, compared with as low as 30
percent last week. Prior to the Fed meeting, March was the first month
showing at least even odds for a rate increase.
Data continues to be
the Fed’s guide toward an eventual rate boost, and a report today showed
the economy expanded at a slower pace in the third quarter as companies
took advantage of gains in consumer and business spending to reduce
bloated stockpiles. A separate measure showed contract signings to
purchase previously owned homes unexpectedly fell in September by the
most since the end of 2013, indicating the residential real estate
market is cooling from its recent brisk pace.
Source : Bloomberg
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