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Roundup: U.S. stocks end narrowly mixed amid Fed minutes

Xinhua, May 21, 2015 Adjust font size:

U.S. stocks closed mixed Wednesday, as investors pondered over the minutes from the Federal Reserve's April policy meeting released in the afternoon.

The Dow Jones Industrial Average dipped 26.99 points, or 0.15 percent, to 18,285.40. The S&P 500 inched down 1.98 points, or 0. 09 percent, to 2,125.85. The Nasdaq Composite Index edged up 1.71 points, or 0.03 percent, to 5,071.74.

According to the minutes, many of the participants in the Fed's April policy meeting "thought it unlikely that the data available in June would provide sufficient confirmation that the conditions for raising the target range for the federal funds rate had been satisfied," though they concluded that the first-quarter economic slowdown was transitory.

"The FOMC is not likely to tighten in June, but their discussion will take the possibility seriously. We read the minutes as confirmation September is still very much in play," said Chris Low, chief economist at FTN Financial, in a note.

A whole batch of disappointing economic reports was released since the Fed's April meeting, leading many analysts to expect a first rate hike in September or next January.

Chicago Fed Resident Charles Evans said Wednesday that a first rate hike is not likely to be appropriate until early 2016.

Markets are also putting a greater focus on Fed Chair Janet Yellen's speech Friday for possible new clues of an upcoming rate hike.

In corporate news, Target Corp. rose 0.33 percent to 78.18 dollars apiece Wednesday after posting better-than-expected quarterly earnings. The retail chain reported first quarter 2015 adjusted earnings per share from continuing operations of 1.10 U.S. dollars, up 19.6 percent from 0.92 dollar a year ago.

The CBOE Volatility Index, often referred to as Wall Street's fear gauge, increased 0.23 percent to end at 12.88 Wednesday.

In other markets, oil prices gained after government data showed that U.S. inventories dropped last week, the third weekly fall in crude supplies.

Light, sweet crude for July delivery moved up 99 cents to settle at 58.98 dollars a barrel on the New York Mercantile Exchange, while Brent crude for July delivery moved up 1.01 dollars to close at 65.03 dollars a barrel.

The U.S. dollar traded mixed against other major currencies on Wednesday as the newly-released Fed minutes showed it is unlikely for the central bank to raise interest rates in June.

In late New York trading, the euro fell to 1.1118 dollars from 1.1153 dollars in the previous session, while the dollar bought 121.16 Japanese yen, higher than 120.71 yen of the previous session.

Gold futures on the COMEX division of the New York Mercantile Exchange rose on the release of the minutes from the latest Fed meeting.

The most active gold contract for June delivery rose 2 dollars, or 0.17 percent, to settle at 1,208.70 dollars per ounce. Endite