Apple lost 3.2 per cent to weigh on tech, as supplier Dialog Semiconductor’s sales and outlook missed analysts’ estimates.
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In Shenzhen, BOE Technology, down 0.7 percent to 3.08 yuan; XCMG Machinery, up 6.7 percent to 4.59 yuan and Suning Appliance, down 1.0 percent to 16.12 yuan were among the most actively traded.
The Dow Jones industrial average fell 23.65 points, or 0.1 percent, to 17,623.05.
The Nasdaq Composite index added 2.84 points, less than 0.1 percent, to 5,034.70. Jonathan Golub of RBC Capital Markets is forecasting that the S&P 500 will close above 2,100 before year end.
On Tuesday, the markets were fractionally down on Wednesday despite a strong construction report indicating a big boost in multi-family units (flat for single-family units).
U.S. stocks in particular have recovered sharply since their late-August swoon. Globally, in focus next week will be not only the FOMC but the Bank of Japan and its inflation and economic forecasts. That came a day after the European Central Bank hinted it will bolster stimulus if needed. The Federal Reserve is not expected to raise rates during the two-day meeting, but investors will scrutinize the central bank’s statement to try and determine when it will finally raise rates. The probability of a rate increase this month is now only 6 per cent, and about 34 per cent for December.
Valeant Pharmaceuticals was down 7.8% at $107.06. Investors weren’t mollified after company executives and board members took to a conference call to mount a defense of the Valeant’s arrangement to sell medications through mail-order pharmacy Philidor RX Services, a practice that a short-seller last week said pumped up Valeant’s revenue. The S&P energy sector fell 2.5 per cent, leading sector declines for the S&P 500.
Piedmont Natural Gas, which distributes natural gas in three southern states in the USA, jumped 37.3 percent on news it will be acquired by Duke Energy $4.9 billion. Cleveland Research downgraded the stock to underperform, the equivalent of a sell.
Last week, stocks rallied for a third straight period, as the S&P 500 bounced back to positive territory for the year.
General Atlantic LLC, the privately-held equity firm agreed to acquire 21.6% stake in the India-baed IIFL Wealth Management Limited for about $173 million or ₹11.2 billion.
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“For the rest of today, I would expect a quiet type of session, digesting the recent gains”, Bakhos said. The Nasdaq Biotechnology Index rose 0.8 per cent. Qunar jumped almost 11% to $44.23. Third-quarter growth data due this week is one reason the Fed is set to remain on pause, say economists (http://www.marketwatch.com/story/fed-set-to-remain-on-pause-as-gdp-data-expected-to-show-slowdown-2015-10-25).
