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BUSINESS Thursday 2 May 2019
A25

Stock indexes mostly lower after Fed leaves rates unchanged

By ALEX VEIGA Fed had said it appeared
Associated Press that growth had slowed
Major U.S. stock indexes from the fourth quarter of
were mixed in afternoon last year. Household goods
trading Wednesday af- makers, energy companies
ter the Federal Reserve and other sectors helped
left its key interest rate un- pull the market lower, out-
changed and signaled no weighing gains in technol-
rate hikes are likely in com- ogy stocks.
ing months. Stocks had been moving
The move, which was wide- sideways right before the
ly expected, comes amid Fed's announcement. They
signs of renewed econom- rallied earlier in the day as
ic health, but unusually low large U.S. companies con-
inflation. The announce- tinued to surprise investors
ment reaffirms a message with solid profits.
that has reassured investors Earnings reporting season
since the start of the year: is more than a third of the
No rate hikes are likely any- way through and the re-
time soon. sults have been tempering
The low-rate policy is help- investors' worst fears about
ing to keep borrowing Specialist John Alatzas, left, and trader Michael Milano work on the floor of the New York Stock a severe profit slump. Earn-
costs down and supporting Exchange, Wednesday, May 1, 2019. ings are down about 0.3%
an economy that's been Associated Press so far for S&P 500 compa-
growing steadily since late nies. That's far better than
last year. commodation." rome Powell fielded ques- able with our current policy the 4% drop expected just
"The Fed action is a posi- Soon after the Fed issued tions from reporters. At one stance," Powell said. a few weeks ago.
tive, because it means its statement, stock prices point, he declined to say Bond prices fell. The yield Technology giant Apple
that rates are going to re- rose modestly. And the whether some investors are on the 10-year Treasury beat forecasts, despite an-
main low," said Tom Martin, yield on the 10-year Trea- misguided in expecting the note rose to 2.51% from other quarter of slumping
senior portfolio manager sury note, which influences U.S. central bank to trim in- 2.50% late Tuesday. revenue as iPhone sales
with Globalt Investments. mortgages and some other terest rates this year, some- The Fed also expressed a struggle. Chipmaker Ad-
"And if there was anything loans, fell slightly. thing traders have been more upbeat view of the vanced Micro Devices also
that looked like it could be But the market gave back betting will happen before economy, saying "eco- beat forecasts. The solid re-
harmful, the Fed is standing some of its gains as Fed- year's end. nomic activity rose at a sults from both companies
ready to consider more ac- eral Reserve Chairman Je- "The committee is comfort- solid rate." In March, the helped send other technol-
ogy stocks higher. Johnson
Controls and Harris were
US home prices rose 3% year over year in February among the big gainers in
the industrial sector after
reporting surprisingly strong
By JOSH BOAK home owners to upgrade profits of their own. Health
Associated Press to a more expensive prop- care stocks leveled off af-
WASHINGTON (AP) — U.S. erty. ter an early decline as the
home prices increased at Price increases were stron- strength of CVS' stellar re-
a slower pace in February, gest in the Sunbelt, a sults offset concerns about
a sign that several years of change from past years Amgen. The drugmaker did
outsized gains in home val- in which the largest gains report solid profit results but
ues have created afford- came from West Coast also a surge in costs and
ability challenges in many cities such as Seattle and falling sales of its cancer
metro areas. San Francisco. Last Vegas drug Neulasta. The health
The S&P CoreLogic Case- reported the largest price care sector has lagged far
Shiller 20-city home price increase at 9.7%, followed behind the rest of the mar-
index rose 3% from a year by Phoenix at 6.7% and In this Feb. 20, 2019, file photo a girl pushes herself on a scooter ket so far this year, up just
earlier, down from an an- Tampa with a 5.4%. by a home for sale in the Dallas suburb of Richardson, Texas. 3% versus a 28% surge for
nual gain of 3.5% in Janu- Meanwhile, major Califor- Associated Press
ary. nia metro areas lost much technology stocks.q
After the damage from the of their momentum. San
2008 financial crisis began Francisco prices rose just
to fade, home values start- 1.4%, San Diego by 1.1%
ed to climb in 2012 and and Los Angeles by 1.8%.
consistently outstripped These gains are now below
wage growth. This made it the gains in national aver-
more difficult for would-be age hourly earnings, which
buyers to save for a down the Labor Department has
payment and existing reported are up 3.2%.q

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