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Wall St slips as Fed holds on rates

Wednesday, May 03, 2017 - 01:22

Wall Street ended slightly lower after the U.S. Federal Reserve held interest rates unchanged and investors digested another heavy round of earnings reports. Roselle Chen reports.

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After the close, Facebook reported jump in quarterly profit fueled by strong growth in its mobile ad business. On the flip side, Tesla reported a wider loss than expected, but said production of Model 3 remains on track. U.S. stocks closed mostly lower, unimpressed by the U.S. Federal Reserve not hiking interest rates. The U.S. central bank downplayed weak first-quarter economic growth and it emphasized the strength of the labor market. That signals a possible rate hike as early as June. Greg McBride, chief financial analyst at Bankrate.com. (SOUNDBITE) GREG MCBRIDE, CHIEF FINANCIAL ANALYST, BANKRATE.COM (ENGLISH) SAYING: "We got what we expected from the Fed. No surprises. Still, a positive outlook for the economy, an inclination toward further interest rate increase, which, again, at this point, don't represent putting your foot on the break and slowing the economy, it's just easing the foot off the gas pedal and providing less stimulus to the economy." Apple weighed on the market. The company's shares dropped one day after it reported a surprise fall in iPhone sales and issued a weak outlook. Automatic Data Processing - ADP - fell after its revenue missed expectations. Anadarko Petroleum shares plunged after one of its wells was linked to a fatal explosion in Colorado. But the operator of Pizza Hut and KFC, Yum Brands, rose on good results. In Europe, the markets closed mixed.

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Wall St slips as Fed holds on rates

Wednesday, May 03, 2017 - 01:22