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US Stocks Fall Ahead of Fed Decision   09/18 09:29

   Stocks moved broadly lower on Wall Street in early trading Wednesday ahead 
of a highly anticipated decision from the Federal Reserve on interest rates.

   NEW YORK (AP) -- Stocks moved broadly lower on Wall Street in early trading 
Wednesday ahead of a highly anticipated decision from the Federal Reserve on 
interest rates.

   The Fed is expected to cut its benchmark interest for a second time this 
year. Close attention will be paid to any clues Fed Chairman Jerome Powell 
gives about future rate policy during a 2:30 p.m. press conference.

   Industrial, technology and bank stocks were among the biggest losers in the 
early going as investors headed cautiously for less-risky holdings.

   Adobe fell 3.8% and led the tech sector lower after giving investors a weak 
profit forecast.

   Banks, including JPMorgan and Bank of America, moved lower. Bond prices rose 
and the yield on the 10-year Treasury fell to 1.76% from 1.81% late Tuesday. 
Investors typically shift money into bonds when they grow more concerned about 
the economy's health. For banks, lower bond yields mean less lucrative interest 
rates on loans.

   FedEx plunged and dragged down industrial stocks after issuing a 
disappointing earnings report.

   Utilities held up the best in the early going and swayed between small gains 
and losses. The sector is typically considered a safer place to park money amid 
concerns about economic growth. Consumer product makers, such as Kraft and 
Colgate, showed small gains.

   Investors largely expect the Fed to cut short-term interest rates by another 
quarter of a percentage point, following a similar cut in late July. That 
marked the first time in more than a decade that the central bank cut rates as 
it tries to shield the United States from the pain of a slowing global economy 
and the effects of the trade war with China.

   U.S. and Chinese representatives plan to hold trade talks next month in 
Washington.

   Aside from the rate cut, investors will also be listening for the Fed's 
assessment of the nation's economic health any other cues from Powell about the 
central bank's future intentions. Back in July, the Dow Jones Industrial 
Average dropped more than 300 points when Powell refused to commit to a long 
cycle of rate cuts.

   KEEPING SCORE: The S&P 500 index fell 0.3% as of 10 a.m. Eastern time. The 
Dow fell 68 points, or 0.3%, to 27,041. The Nasdaq rose 0.3%.

   OVERSEAS: Stocks in Europe edged higher. A government report showed that 
inflation in Britain fell to a near three-year low in a potential boon to 
households as the nation faces a potentially painful economic exit from the 
European Union. Britain is scheduled to leave the trading bloc on Oct. 31 and 
might not have a deal in place that regulates trade and other issues with 
European Union nations.

   Asian stocks were mixed. Export data from Japan show that the U.S.-China 
trade war is taking a toll on demand across the region. Japan said exports fell 
8% in August, with declines in machinery, vehicles and chemicals.

   OIL SLICK: Oil prices continued pulling back from a 14% spike on Monday as 
Saudi Arabia brings back production at an oil facility attacked over the 
weekend. It said half of the production cut by the attack is already restored 
and plans on full production by the end of the month. Benchmark U.S. crude fell 
$1.09 to $58.22 per barrel. Brent crude, the international standard, fell 84 
cents to $63.70.

   MISSED DELIVERY: FedEx fell 12.8% after reporting a disappointing drop in 
fiscal first quarter profit and cutting its full-year forecast as the trade war 
takes its toll on economic growth. The company is also dealing with the loss of 
its lucrative contract with Amazon. FedEx cut ties with the retail giant over 
the last several months.

   CEO Fred Smith said escalating tariffs and trade tension between the U.S. 
and China have lowered industrial production and hurt the international 
shipment of goods.

   TOUGH TO CHEW: Chewy fell 6.4% to $28.31 after the online pet store's fiscal 
second quarter loss was far wider than Wall Street had expected. The company 
debuted on the New York Stock Exchange in June at $22 per share and closed at 
$34.99 on its first day. 


(CZ)

 
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