By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market ended a volatile
session on Wednesday slightly higher with the Dow Jones Industrial
Average closing at a record level for the first time this year.
The benchmark S&P 500 and blue-chip index notched modest
gains for the month. Stocks swung in the aftermath of the Federal
Open Market Committee announcement, which came in as expected.
The Fed announced it would reduce the monthly bond-buying
program by another $10 billion to $45 billion and kept the key rate
unchanged at zero, looking past surprisingly grim growth in the
first quarter.
The Dow Jones Industrial Average (DJI) closed at a record level
after rising 45.47 points, or 0.3% to 16,580.84. The blue-chip
index gained 0.75% over the past month.
The S&P 500 (SPX) ended the day 5.62 points, or 0.3%, higher
at 1,883.95 and rose 0.6% over the past month. The benchmark index
is less than 10 points off its record closing level.
The Nasdaq Composite (RIXF) added 11 points, or 0.3% to
4,114.56. The selloff of biotech and Internet stocks during April
left the index with a 2% loss over the month.
Read the recap of MarketWatch's live blog of today's
stock-market action.
Bernie Williams, chief investment officer at USAA Investment
Solutions, said further tapering, which will eventually run its
course, is good because it means the economy is improving.
"We expect the economy to strengthen in the second half of the
year and instead of a summer 'soft patch' we think we will see a
rebound which will help markets," he added.
Growth in the U.S. economy nearly ground to a halt in the first
quarter, a bout of weakness spurred by one of the worst winters in
years. Gross domestic product rose at an annual rate of just 0.1%
from January through the end of March, the weakest performance in
three years, according to a preliminary estimate by the Commerce
Department. Economists surveyed by MarketWatch had forecast growth
to slow to a seasonally adjusted 1% from a 2.6% clip in the final
three months of 2013.
Private-sector hiring picked up in April, with employers adding
the most jobs in five months, according to data released Wednesday
morning.
Chicago PMI rebounded in April to the fastest pace in six
months, according to the Chicago business barometer released
Wednesday.
Twitter, eBay sell off after results
Twitter (TWTR) shares sold off and closed 8.6% lower after the
microblogging company beat revenue forecasts, but disappointed with
its average monthly users tally for end-March.
EBay (EBAY) shares fell 5%, after its first-quarter earnings
topped expectations but its outlook was viewed as lackluster.
Facebook, Inc (FB) shares rose 2.8% after the social-media site
introduced a new feature that allows users to log in anonymously in
order to try out new apps. Facebook Chief Executive Mark Zuckerberg
said the feature is about "giving people more power and
control."
Shares of Panera Bread Co. (PNRA) fell 6.3% after the company's
second-quarter outlook fell short of Wall Street estimates.
WellPoint Inc. (WLP) reported adjusted first-quarter earnings
above expectations with EPS coming in at $2.30, compared with
estimates of $2.10. Shares rose 5.6%.
Time Warner Inc. (TWX)reported a higher profit, saying
blockbuster hit "The Lego Movie" helped the company get off to a
"strong start" for 2014. Shares added 2.7%.
Shares of Pepco Holdings Inc. (POM) surged 17% to $26.77 after
Exelon Corp. (EXC) said it would buy the utility firm in an
all-cash deal for $27.25 a share, valuing the company at about
$6.83 billion.
Energizer (ENR) shares jumped 14% after the firm said it would
split into two companies, one focused on household products and the
other on personal care. The split is expected to be completed in
2015.
In overseas markets, European stocks slipped. In Asia, the Hong
Kong Hang Seng Index fell 1.4% on disappointing bank earnings as a
May 1 holiday looms.
Crude-oil (CLM4) prices were under pressure. Gold was also
lower, and the dollar remained down against several rivals.
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