Dow Off Record Highs as Traders Digest Fed Statement

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Published July 31, 2013

| FOXBusiness

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The blue-chip average was well off all-time highs in afternoon trading on Wednesday as traders analyzed the Fed's policy statement.

Today's Markets

As of 2:18 p.m. ET, the Dow Jones Industrial Average fell 17.2 points, or 0.11%, to 15502, the S&P 500 rose 1.4 points, or 0.08%, to 1687 and the Nasdaq Composite advanced 9.8 points, or 0.27%, to 3626.

There was no lack of information for the Street to break down on Wednesday. 

The Federal Reserve said it will hold interest rates at historic lows and continue buying assets at an $85 billion-a-month clip. The central bank said the economy continues improving, but inflation remains "persistently" below its target of 2%, which could pose additional risks to the economy. It said it expects to keep up with its accommodative policies until there is "substantial" improvement in the labor market or inflation rises above 2%.

A report from payroll processor ADP showed the U.S. private sector tacking on 200,000 jobs in July, topping expectations of an increase of 180,000. The labor market has shown continued signs of recovery, but the process has been stubbornly slow, economists said. 

The report comes ahead of the all-important monthly jobs report on Friday. 

"Today‚Äôs report long with the modest upward revisions provides a bit of optimism heading into Friday," said Dan Greenhaus, chief global strategist at BTIG. 

Meanwhile, the Commerce Department reported the U.S. economy expanded at an annualized rate of 1.7% in the second quarter, coming in well above estimates of 1%.

Elsewhere, IBM (IBM) said the Securities and Exchange Commission is investigating how it calculates cloud computing revenue. Big Blue said it was cooperating with the SEC in the matter. Bill Ackman's Pershing Square revealed it took a 9.8% stake in Air Products & Chemicals (APD) worth $2.2 billion. 

In commodities, oil rose 26 cents, or 0.25%, to $103.35 a barrel. Wholesale New York Harbor gasoline slumped 0.79% to $2.995 a gallon. In metals, gold advanced $4.20, or 0.32%, to $1,329 a troy ounce. 

Foreign Markets

The Euro Stoxx 50 fell 0.24% to 2753, the English FTSE 100 rose 0.65% to 6613 and the German DAX dipped 0.37% to 8240.

In Asia, the Japanese Nikkei 225 sold off by 1.5% to 13668 and the Chinese Hang Seng slipped 0.32% to 21884.

URL

http://www.foxbusiness.com/markets/2013/07/31/stocks-push-higher-after-data-beat-expectations/