U.S. Stocks Open Lower Ahead of Fed Policy Meeting

0
148
Federal Reserve, Washington DC

Wall Street opened lower on Monday ahead of the Fed’s policy meeting later this week. 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.

Fed Chair Janet Yellen has stated that there is a possibility of a rate hike this year, but the central bank will only pull the trigger if there are clear signs that the economy is growing.

Investors are now predicting a 6% chance of rates increasing at this week’s meeting, and a 39% chance of a hike in December.

In morning trading, the Dow Jones was down 0.13% to 17,624.52. The NASDAQ composite was also down 0.3% to 5,016.95, and the S&P 500 dropped 0.35% to 2,067.85.

Seven of the S&P’s 10 major sectors were down, and the energy sector, with a 1.3% drop, led the decliners. Oil also dropped on Monday amid a global supply glut.

Pep Boys (NYSE: PBY) is up 22.7% to $14.71 after announcing it would be acquired by Bridgestone (TYO: 5108)

Valeant Pharmaceuticals (NYSE: VRX) is down 7.8% to $107.06. Ctrip.com (NASDAQ: O) jumped 21.7% to $90.50.

Piedmont Natural Gas (NYSE: PNY) jumped 35.3% to $57.13 after agreeing to be acquired by Duke Energy (NYSE: DUK).

LEAVE A REPLY

Please enter your comment!
Please enter your name here