US STOCKS-S&P 500 edges lower ahead of Fed decision

Reuters

Warning: This material has been prepared by a third party company, Reuters, which is independent of Davy. Davy has not reviewed the material and accepts no responsibility for errors or omissions, or for the information or opinions contained therein. It does not constitute investment advice.

    * Bank stocks gain ahead of Fed decision
    * Housing stocks tumble after D.R. Horton results 
    * Wynn Resorts pulls other casino operators lower on Macau
warning
    * Dow up 0.14 pct, S&P off 0.16 pct, Nasdaq down 0.43 pct 

 (Updates to early afternoon)
    By Sruthi Shankar
    Nov 8 (Reuters) - The S&P 500 inched lower on Thursday, as
disappointing results from a slew of companies, including
Qualcomm Inc, countered gains in bank stocks ahead of the
Federal Reserve's interest rate decision.
    Among the biggest decliners on the benchmark index were
Perrigo Co  PRGO.N , Wynn Resorts Ltd  WYNN.O  and D.R. Horton
Inc  DHI.N , all falling on disappointing quarterly results.
    Qualcomm  QCOM.O  tumbled 7.2 percent after the chipmaker
forecast revenue for the holiday quarter below analysts'
estimates, as it took a hit from the loss of chip sales to Apple
Inc  AAPL.O .  urn:newsml:reuters.com:*:nL4N1XI62B
    That added to the S&P technology index's  .SPLRCT  0.4
percent loss and weighed on the Nasdaq.
    The S&P banks index  .SPXBK  was up 0.8 percent, with Bank
of America Corp  BAC.N  rising 1.7 percent and JPMorgan Chase &
Co  JPM.N  gaining 1.1 percent ahead of the Fed decision.
    The sluggish moves came after U.S. stocks surged more than 2
percent on Wednesday after the midterm election results came in
largely as expected, with Democrats winning control of the House
of Representatives and President Donald Trump's Republican party
expanding its Senate majority.
    "After that huge move up yesterday, I'd just be delighted to
see if it holds on," said Ed Keon, chief investment strategist
at QMA, a multi-asset manager in Newark, New Jersey.
    The U.S. central bank, which is set to release its rate
decision at 2:00 pm ET, is expected to leave interest rates
unchanged, but the statement that follows could lay the ground
for a fourth rate hike in December as well as next year.
    Yield on the 2-year Treasury notes  US2YT=RR , which is most
sensitive to traders' view on Fed policy, edged higher.  US/ 
    "If you've higher bond yields and higher stock prices, that
means that investors have become a little less fearful that the
Fed will stop this economic expansion prematurely," Keon said.
    At 12:59 p.m. ET the Dow Jones Industrial Average  .DJI  was
up 36.88 points, or 0.14 percent, at 26,217.18, the S&P 500
 .SPX  was down 4.62 points, or 0.16 percent, at 2,809.27 and
the Nasdaq Composite  .IXIC  was down 32.24 points, or 0.43
percent, at 7,538.52.
    The Dow was propped up by gains in Walgreen Boots Alliance
Inc  WBA.O  and 3M Co  MMM.N  and JPMorgan. 
    Wynn Resorts fell 12 percent after the casino operator
missed third-quarter profit estimate and warned of a slowdown in
the key Macau market. Shares of peers Melco Resorts and
Entertainment Ltd  MLCO.O  and MGM Resorts International  MGM.N 
also fell. urn:newsml:reuters.com:*:nL8N1XI9ZA
    D.R. Horton dropped 5.4 percent and dragged on other
homebuilders after it warned of rising home prices and higher
mortgage rates weighing on demand.  urn:newsml:reuters.com:*:nL4N1XJ4J5 The PHLX Housing
index  .HGX  fell 1.4 percent.
    Perrigo Co  PRGO.N  plunged 14.7 percent after the generic
drugmaker cut full-year earnings forecast on lowered
expectations from its prescription pharmaceuticals.  urn:newsml:reuters.com:*:nL4N1XJ4R1
    Declining issues outnumbered advancers for a 1.13-to-1 ratio
on the NYSE and for a 1.00-to-1 ratio on the Nasdaq.
    The S&P index recorded 33 new 52-week highs and two new
lows, while the Nasdaq recorded 69 new highs and 64 new lows.

 (Reporting by Sruthi Shankar in Bengaluru; Editing by Arun
Koyyur)
 ((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223
8780; outside U.S. +91 80 6749 6328; Reuters Messaging:
sruthi.shankar.reuters.com@reuters.net))

Warning: This content may be provided by regulated and unregulated entities and is not created, reviewed or endorsed by Davy. It is provided for general information purposes only and does not constitute a recommendation or solicitation to purchase or sell any security or make any other type of investment or investment decision. Importantly, it does not constitute investment advice, as it does not contemplate the personal circumstances of any particular person or group of persons. Neither Davy nor the providers of the Third Party Content will be liable for any investment decision made based on the reliance on or use of such data, or any liability that may arise due to delays or interruptions in the delivery of the Third Party Content for any reason.