Dow drops ahead of Fed statement; Apple lifts Nasdaq
A Wall Street sign hangs near the New York Stock Exchange, in New York. US stocks Tuesday, March 17, 2015, finished mostly lower ahead of a closely watched Federal Reserve policy announcement, while the Nasdaq rose on news of a potential new Apple television venture. AP PHOTO/JIN LEE
NEW YORK–US stocks Tuesday finished mostly lower ahead of a closely watched Federal Reserve policy announcement, while the Nasdaq rose on news of a potential new Apple television venture.
The Dow Jones Industrial Average dropped 128.34 points (0.71 percent) to 17,849.08.
The broad-based S&P 500 shed 6.99 (0.34 percent) at 2,074.20, while the tech-rich Nasdaq Composite Index advanced 7.93 (0.16 percent) to 4,937.43.
Investors awaited the Fed’s policy announcement Wednesday, which is expected to give clues on the timing of an increase in near-zero interest rates, perhaps as early as June.
Apple jumped 1.7 percent following a Wall Street Journal report that it is in talks with CBS, ABC and other networks to offer a slate of television broadcasts across its devices.
“Apple seems to be on a roll right now,” said a note from Barclays.
Shopping center operator Macerich fell 3.5 percent after rejecting a $16 billion takeover proposal from mall giant Simon Property Group, saying the bid undervalues it but adding that it raises “serious” antitrust issues.
Simon fell 0.5 percent.
American Airlines rose 6.9 percent on news it will join the S&P 500 index, replacing pharma company Allergan, which was acquired by Actavis.
MGM Resorts International vaulted 10.6 percent higher after Land and Buildings, a real estate investment company, called for the casino resorts company to consider restructuring holdings into a real estate investment trust.
Dow member DuPont, which faces a proxy battle with activist shareholder Nelson Peltz, dropped 3.1 percent.
Bond prices rose. The yield on the 10-year US Treasury fell to 2.06 percent from 2.08 percent Monday, while the 30-year declined to 2.61 percent from 2.65 percent. Bond prices and yields move inversely.
