US stocks have closed mostly flat, except for Nasdaq’s solid gain, as investors await the outcome of a Federal Reserve monetary policy meeting.
The Dow Jones Industrial Average slipped 1.38 (0.01 per cent) to 15,520.59 on Tuesday.
The broad-based S&P 500 added 0.63 (0.04 per cent) at 1,685.96.
The tech-rich Nasdaq Composite Index outperformed, advancing 17.33 (0.48 per cent) to 3,616.47.
The Dow and the S&P 500 drifted in and out of positive territory after Monday’s losses, while the Nasdaq maintained gains throughout the quiet trading session.
The action came as the Federal Reserve opened a two-day monetary policy meeting expected to provide no new direction but perhaps clues to the Fed’s thinking on winding down massive stimulus.
“Typically, the stock and bond markets are calm during meeting days as traders wait for the Fed’s policy statement, scheduled for release at 2pm (0400 on Wednesday AEST) tomorrow,” said Fred Dickson, chief investment strategist at Davidson Companies.
A weaker-than-expected reading on consumer sentiment offset a strong report on home prices in line with Wall Street estimates.
The Conference Board’s consumer confidence index fell to 80.3 in July from 82.1 in June.
The S&P/Case-Shiller index of home prices in the 20 largest US cities was up 12.2 per cent in May from a year ago.
Dow member Pfizer rose 0.4 per cent after besting expectations by 1 cent at 56 cents per share in spite of slightly lower-than-expected revenues.
Rival drug maker Merck, another Dow blue chip, slipped 0.6 per cent after earnings topped expectations by one cent at 84 cents per share, but revenues disappointed.
Technology shares showed strength. Cisco Systems was the Dow’s best gainer, adding 1.3 per cent.
Facebook jumped 6.2 per cent to $37.63, climbing nearly back to the $38 initial public offering price last year for the first time.
Leading potash equities plummeted after Russian potash producer Uralkali announced it was cutting links with its Belarussian partner, raising fears of an end to the cartel-like system that has supported prices. Mosaic sank 17.3 per cent while Potash Corp of Saskatchewan dived 16.5 per cent. Agrium dropped 5.4 per cent.
Hospital company Community Health Systems shed 3.5 per cent after announcing a $7.6 billion acquisition of Health Management Associates, which operates 71 hospitals in 15 states. HMA sank 10.9 per cent.
Dow member JPMorgan Chase lost 0.7 per cent after reaching a $410 million settlement with the Federal Energy Regulatory Commission on energy market manipulation in which the banking giant neither admitted nor denied the charges.
Bond prices dipped. The yield on the 10-year US Treasury bond edged up to 2.60 per cent from 2.59 per cent on Monday, while the 30-year rose to 3.67 per cent from 3.66 per cent. Bond prices and yields move inversely.
