The S&P 500 slipped into the red and the Dow pared gains in late morning trade on Wednesday, led by losses in energy and utilities sectors, ahead of the Federal Reserve's decision on interest rates. However, the Nasdaq, which is more technology heavy, was lifted by a 5.6 percent rise in Apple after the company's strong earnings and iPhone sales.
The Fed is expected to keep interest rates unchanged in its first policy meeting after President Donald Trump took office, as the central bank seeks greater clarity on his economic policies.
Investors will parse the Fed's statement, expected at 2:00 pm ET (1900 GMT), for any changes following a spate of strong economic data. "We're in a very stable market with a lot of cross-currents. Fourth-quarter earnings seem to be okay," said Chuck Self, chief investment officer at iSectors LLC in Appleton, Wisconsin. "However, political uncertainty is making it hard for investors to have conviction in the market."
At 11:06 am ET the Dow Jones Industrial Average was up 15.21 points, or 0.08 percent, at 19,879.3, the S&P 500 was down 2.2 points, or 0.09 percent, at 2,276.67 and the Nasdaq Composite was up 14.84 points, or 0.26 percent, at 5,629.63. Investors hope quarterly earnings support valuations, especially after a post-election rally pushed Wall Street to record highs. Earnings of S&P 500 companies are estimated to have risen 7.1 percent in the latest quarter, according to Thomson Reuters I/B/E/S.
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