* Fed notes economic pullback, says likely temporary
* Amazon rallies after results, Boeing also up
* RIM changes name, unveils phones, shares fall
* Indexes: Dow off 0.1 pct, S&P off 0.1 pct, Nasdaq off 0.1
By Angela Moon
NEW YORK, Jan 30 U.S. stocks edged lower on
Wednesday after the Federal Reserve left in place its
bond-buying stimulus plan, saying economic growth had stalled
but indicating the pullback was likely temporary.
Describing the U.S. job market as continuing its modest pace
of improvement, the Fed repeated a pledge to keep purchasing
securities until employment improves substantially.
The statement from the Fed follows data that showed the
economy, as measured by gross domestic product, unexpectedly
contracted in the fourth quarter. Economists stressed that the
0.1 percent contraction, caused partly by a plunge in government
spending and lower business inventories, is not an indicator of
"It is interesting that the Fed decided to focus on the GDP
report, pointing to how activity slowed because of transitory
factors. That sums up the GDP report. I am a bit puzzled why the
Fed focused solely on one report. I would argue that this was a
slightly dovish report," said Tom Porcelli, chief U.S. economist
at RBC Capital Markets in New York.
The Dow Jones industrial average was down 13.32
points, or 0.10 percent, at 13,941.10. The Standard & Poor's 500
Index was down 1.90 points, or 0.13 percent, at
1,505.94. The Nasdaq Composite Index was down 2.11
points, or 0.07 percent, at 3,151.55.
The S&P 500 held above 1,500, seen by technical analysts as
an inflection point that will determine the overall direction in
the near term. The index is on track to post its best month
since October 2011 and its best January since 1997.
"This is a very modest pullback after a steep run," said
Paul Zemsky, head of asset allocation at ING Investment
Management in New York.
"It is too soon for the Fed to start talking about the end
of (their bond buying program); the economy needs stimulus to
sustain this recovery."
Both Boeing Co and Amazon.com shares gained
after earnings beat expectations, continuing a trend this
quarter of high-profile names advancing after results.
Amazon rose 5.1 percent to $273.51 and Boeing rose 1.1
percent to $74.43.
Thomson Reuters data showed that of the 192 companies in the
S&P 500 that have reported earnings this season 68.8 percent
have been above analyst expectations, which is a higher
proportion than over the past four quarters and above the
average since 1994.
Chesapeake Energy rose 8 percent to $20.48 a day
after it said Aubrey McClendon would step down as chief
executive. The last year has been marked by civil and criminal
probes into the second-largest U.S. natural gas producer.
Research In Motion shares fell 6.3 percent
to $14.67 after the company, which is changing its name to
BlackBerry, unveiled a long-delayed line of smartphones in hopes
of a comeback into a market it once dominated.
Giving the market extra support, private sector employment
topped forecasts with the ADP National Employment report showing
192,000 jobs added in January, higher than the 165,000