NEW YORK--US stocks fell, following a four day gain in the Standard & Poor’s 500 Index, ahead of a Federal Reserve announcement on whether it will boost the economy.
Adobe Systems, the world’s largest maker of graphic- design software, slid 6.1% after forecasting sales and profit that trailed some estimates.
Procter & Gamble fell 3.8%t after the consumer-goods company cut its earnings projections. JPMorgan Chase & Co, the largestUS bank, gained 1.9% as it’s poised to more than double the value of its investment in London Metal Exchange shares bought seven months ago from the U.K. unit of bankrupt MF Global Holdings Ltd.
The S&P 500 fell 0.2 percent to 1,355.14 at 9:49 a.m. New York time. The Dow Jones Industrial Average lost 21.30 points, or 0.2%, to 12,816.03. Trading in S&P 500 companies was down 9 percent from the 30-day average at this time of day.
“The market may move on a bit from Greece now,” Rick Fier, director of equity trading at Conifer Securities LLC in New York, said in a telephone interview today. His firm oversees more than $12 billion. “Some of the question marks will get smaller. Yet people are looking for comfort from the Fed.”
The Fed will probably decide today to expand Operation Twist beyond $400 billion to spur growth and buy protection against a deeper crisis in Europe, according to a Bloomberg News survey of economists.
Fifty-eight percent of respondents in a June 18 poll said the Fed will prolong the program, which seeks to lower borrowing costs by extending the average maturity of the securities in the central bank’s portfolio. The current program ends this month. (Bloomberg/tw)