Stocks on Wall Street Fluctuate as Fed Began 2-Day Policy Meeting

Nichole Harper
17 Jun, 2014
New York City

U.S. market indexes eased and Federal Reserve began two-day policy meeting. Gold and oil consolidated and violence in Iraq spread to more regions. Siemens and Mitsubishi Heavy offered a rival bid for energy business of Alstom SA in France. U.S. housing starts drop 6.5% in May.

[R]1:20 PM New York – U.S. market indexes eased and Federal Reserve began two-day policy meeting. Gold and oil consolidated and violence in Iraq spread to more regions. Siemens and Mitsubishi Heavy offered a rival bid for energy business of Alstom SA in France.[/R]

Stocks on Wall Street searched for direction as the Federal Reserve began two-day policy meeting in Washington.

S&P 500 index increased 2.9 to 1,940 and the Nasdaq Composite Index gained 17.15 to 4,338.32.

Commodities markets were in focus after oil edged lower and oil traded nearly flat despite the growing violence in Iraq.

Crude oil edged lower at 8 cents to $106.82 and gold eased $4.80 to $1,270.50 an ounce.

European Markets

Siemens AG and its Japanese partner Mitsubishi Heavy Industries Ltd offered to acquire France based Alstom SA’s energy business and rival the $17 billion offer from General Electric.

Siemens and Mitsubishi planned to divide up Alstom’s power business and offered to acquire Alstom’s gas turbine manufacturing business for €3.9 billion in cash and in a second deal merge its rail business with Alstom’s larger business division.

Separately, Mitsubishi plans to pay €3.1 billion for 40% stake in joint ventures in nuclear, and 20% stake in hydro power businesses and take 20% stake in grid. Mitsubishi is also prepared to acquire 10% stake in Alstom controlled by Bouygues.

The two offers puts the total bid at €13.4 billion.

In London trading, FTSE 100 index inched up 0.07% or 4.90 to 6,759.54 and in Frankfurt the DAX index rose 0.4% to 9,922.60.

In Paris, CAC 40 index gained 0.5% or 22.65 to 4,532.70.

In the earnings news, Ashtead Group profit jumped 68% to £231 million on 24% increase in revenues. Consort Medical net plunged 47% to £13 million.

Whitbread jumped after sales surged 14.6% to £323 million. Xaar lowered revenue outlook and gross profit margin.

Asian Markets

Stocks in Tokyo advanced on weaker than average volume and yen edged lower to close below 102 mark against the U.S. dollar. Casino game makers were in focus ahead of a parliamentary debate on casino laws tomorrow.

Stocks in Tokyo closed higher and the yen gained as tensions in the Middle East rose and violence in Iraq spread to more cities.

Casino equipment and gambling machines makers were in focus ahead of a parliamentary debate on the overhaul of casino laws tomorrow.

The Nikkei 225 Stock Average gained 42.68 or 0.3% to 14,975.97 and the broader Topix index edged up 3.52 to 1,238.20.

The yen slid to close at 101.91 against one U.S. dollar.
In Mumbai trading, the Sensex Index climbed 330.71 or 1.3% to close at 25,521.19 The CNX Nifty jumped 98.15 to 7,631.70.

In corporate news, Essar Steel secured order to supply 102,000 tons of steel pipes from Gujarat government.

Hindustan Zinc rose after government plans to sell its stake worth about Rs 20,000 crore.

Tata Steel plans to raise up to Rs 14,000 crore or $2.2 billion through a domestic and international bond offering.

U.S. Stocks in Review

FactSet Research Systems Inc ((FDS)) jumped 2.8% or $3.12 to $116.13 after the professional information services provider reported revenue in the third-quarter ending in May jumped 8% to $231.8 million.

Net income in the quarter dropped 3.6% to $51.5 million or $1.21 a diluted share compared to $53.4 million or $1.20.

Korn/Ferry International ((KFY)) declined 4.1% or $1.24 to $29.24 after the recruitment services provider stated total revenue in the fourth-quarter ending in April climbed 9% to $260.8 million.

Net income in the quarter surged 73.8% to $21.2 million or 43 cents a diluted share compared to $12.2 million or 25 cents.