US stocks finish in red
Fed raises rates
TSX higher
US stocks closed lower as the Fed raised interest rates.
Under new chair Jerome Powell, the central bank raised interest rates for the sixth time since the end of 2015 and, somewhat unexpectedly for some, stuck to its prior forecast of three rate hikes in 2018.
The Dow Jones shed almost 45 points at 24,682.
The S&P 500 lost five points at 2,711.
The Nasdaq shed 19 points to 7,345.
In Toronto, the TSX was higher though, up almost 59 points at 15,675.
MID-SESSION
US benchmarks were mixed as the Fed raised interest rates, as expected, with the Dow Jones adding around 42 points at 24,770.
The S&P 500 is up 3.82 at 2,720. The Nasdaq though lot 3.4 at 7,360.
The Central bank hiked short-term interest rates by a quarter-point and predicts that rates will rise higher than previously expected in the coming years.
Jacob Deppe, head of trading at online trading platform Infinox said: "A rate rise by the US Federal Reserve today was widely expected, priced in by markets and came as little surprise.
“So sure were markets that a rate rise would occur today they gave it a near 95% probability.
“What markets will have been looking for was any indication the Fed planned to tighten monetary policy at a faster rate than expected during the rest of 2018.
“We haven’t seen a great deal of evidence to suggest the Fed is about to radically steer away from its previously stated policy of three interest rate rises this year."
But he added: "Given how few people there are left to fill the jobs being created by the US economy and with the unemployment rate forecast to continue to fall, wage demands are bound to increase over the coming months, so it’s impossible to rule completely rule out a fourth rate hike before Christmas."
OPEN
US stocks are heading steadily higher at mid-session as traders await the interest rate decision.
On Wall Street, the Dow Jones is up over 127 points at 24,855, while the S&P 500 is up over 11 points at 2,728.
The tech heavy Nasdaq index added over 24 points to stand at 7,388.
In Toronto, the TSX is up over 119 points to stand at 15,736.
David Madden, analyst at London based CMC Markets, said: "...the Federal Reserve is widely tipped to raise interest rates to 1.75% from 1.5%.
"A growing number of traders are now talking about the possibility of four rate hikes this year. Jerome Powell took over the Fed chair in February, and he is likely to pick up where Janet Yellen left off in terms of language and tone."
Meanwhile, in data, US total homes sales in February jumped to 5.54mln, up from 5.38mln, with economists having expected a reading of 5.4mln.
Among notable movers on Wall Street, Proteostasis Therapeutics Inc (NASDAQ:PTI) added over 2% to US$5.28 after the company reported the withdrawal of its equity offering due to market conditions.
Winnebago Industries Inc (NYSE:WGO) shares shed over 4% to US$4.82 as the firm reported better-than-expected results for its second quarter.
In Canada, the biggest gainer on the TSX was Enerplus Corp (TSE:ERF), which gained over 9% to C$15.70 as the oil price firmed.
In mining, First Quantum Minerals Ltd (TSE:FM) shed 1.94% to C$17.62 after Zambia's tax agency yesterday hit the firm with US$8.04bn in unpaid import duties.
OPEN
US stocks started mixed on Wednesday ahead of the much anticipated rate decision from the Fed.
"The Fed concludes is two day meeting later on today, after which it is widely expected to raise interest rates by 25 basis points," said Craig Erlam, market analyst at Oanda.
"The hike is 94% priced in according to CME Group and so any reaction to this could be relatively muted.
What to Watch Out Today From the Fed: Today, the Fed will conclude its two-day meeting and announce the interest rates. The Fed is expected to raise interest rates for the first time under Jerome Powell. As shown below, most analysts expect the Fed to… https://t.co/Jx7sjcDGDw pic.twitter.com/UOGRZNHorn
— Stock Trkr FTSE100 (@StockTrkr) 21 March 2018
"What will be of much more interest to investors is the economic projections which, aside from offering updated growth and inflation forecasts, will offer crucial insight into how policy makers see interest rates moving."
The Fed has previously indicated that it sees three rate hikes this year, but since then President Trump’s tax reforms have provided an additional tailwind for the economy, which could lift inflationary pressures and mean monetary tightening could come a little quicker.
The Dow Jones is down around 22 points at 24,705. The S&P 500 is ahead by one point at 2,717.
The Nasdaq is up almost 15 points at 7,378.
US crude (West Texas Intermediate) is up 1.23% to US$64.32 a barrel.
In stocks, General Mills Inc (NYSE:GIS) shed over 9% to US$45.16 as it slashed its earnings forecast for the rest of the year as Chief Executive Jeff Harmening blamed the group’s disappointing bottom line results in the third quarter on sharp increases in the price of freight transport.
Big oiler Range Resources Corp (NYSE:RRC) is up nearly 4% to US$14.87, while Hess Corp (NYSE:HES) also added 4.11%.
Facebook (NASDAQ:FB) shares were down 0.82% to US$166.77 as the firm continues to suffer the fallout of the scandal over over the collection of data by UK tech firm Cambridge Analytica.