The Dow Jones Industrial Average (DJIA – 18,472.17) ended the day essentially unchanged, down just 1.6 points, or 0.01%.
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US stocks flipped between small gains and losses late-morning Wednesday as declines in consumer-staples and energy shares outweighed gains in tech.
A report by Conference Board is likely to show the consumer confidence index slipped to 95.9 in July from 98.0 in June. The losses in the energy sector were triggered by weaker oil prices after it emerged that crude oil stockpiles in the US are gradually building up, raising fears of another round of price decay. Globally, the FTSE rose 0.4%, the Nikkei gained 1.7% and the Shanghai Composite lost 1.9%.
On the Fed front, the USA central bank is expected to stand pat on interest rates as it releases a policy statement later this afternoon.
That language could mean a rate increase as early as September is still a possibility.
“The Fed walks a delicate line”.
The Fed’s comment that near-term economic risks have diminished come after a recent string of bullish economic data out of the USA labor, housing and retail sectors for the month of June.
Craig Erlam, senior market analyst at Oanda, said: “This evening’s announcement is therefore all about the statement and whether it will be used to build expectations of a hike in the second half of the year or deliver a more dovish message highlighting the heightened risks, including Brexit”.
“As it stands, the markets have once again come around to the idea that there will be another hike this year, pricing in a 51% chance of it happening by December”.
The FOMC is scheduled to announce its decision on Wednesday at 2:00 p.m. ET (1800 GMT).
USA government bonds strengthened slightly after the Fed statement.
Economic news: Market reaction to disappointing durable-goods orders (http://www.marketwatch.com/story/us-durable-goods-orders-sink-4-in-june-biggest-drop-in-almost-two-years-2016-07-27) was muted.
On the data calendar, United States durable goods orders are at 1330 BST and pending home sales at 1500 BST, while the Fed’s rate announcement is at 1900 BST. Pending home sales matched the lowest estimate in the range.
July 26 (Reuters) – Wall Street was set to open little changed on Tuesday as investors awaited the Federal Reserve’s meeting and braced for earnings reports from companies such as Apple and Twitter.
Goodyear Tire & Rubber Co (GT) jumped 3.6% after the company beat earnings estimates.
Yet revenue for the Chicago aerospace giant rose 1 percent to $24.8 billion, and company shares rose steadily before the opening bell Wednesday.
Twitter plunged 14.5 per cent after it reported a US$107 million second-quarter loss and said monthly active users were 313 million, up three per cent from a year ago and only slightly more than the 310 million in the past quarter.
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Facebook Inc.(FB) and Whole Foods Market Inc. The report is due at 10:00 a.m. ET.
