The S&P 500 rose slightly Wednesday after the central bank signaled it expects to raise interest rates by year end. Fred Katayama reports.
Wall Street staged a last minute comeback Wednesday with the S&P 500 and Dow eking out record closes. Financial and energy shares led the rally. The markets had earlier fallen after the Federal Reserve signaled it'll hike interest rates by year end. The Fed left rates unchanged and said it would begin shrinking its $4.2 trillion balance sheet in October. Lazard Asset Management's Ronald Temple SOUNDBITE: RONALD TEMPLE, HEAD OF U.S. EQUITIES, LAZARD ASSET MANAGEMENT, (ENGLISH) SAYING: "I think there's basically, if I think about the key messages coming out of the Fed meeting today, it's no change in plan in terms of at least the announcement vis-a-vis the balance sheet, interest rates - pretty much in line with expectations. So not a surprise the markets' not reacting too sharply either way." Bed Bath and Beyond shares took a bath. Several brokerage analysts slashed their price targets after the home furnishing retailer's declining profit and sales missed estimates. Pfizer rose. Morgan Stanley upgraded the drug manufacturer to "overweight" from "equal weight". Western Digital shares slid. Toshiba chose a group led by private equity firm Bain Capital over Western Digital to buy its chip business for $18 billion. Existing home sales in August fell to their lowest in a year. Hurricane Harvey hurt activity in the Houston area. In Europe, the markets ended mostly flat. A decline in consumer non-cyclicals was offset by a rally in energy stocks.