Markets Right Now: Stocks wobble after Fed, but close higher

NEW YORK – The latest on developments in financial markets (All times local):

4 p.m.

Stocks overcame an afternoon wobble to close mostly higher after the Federal Reserve said it would start reducing its huge bond portfolio next month and was still on track to raise interest rates later this year.

Bond yields rose following the Fed’s announcement Wednesday. That helped send bank stocks higher. Banks benefit from higher bond yields because it means they can charge higher interest rates on loans.

PNC Financial Services rose 1.3 per cent.

High-dividend stocks like household goods makers fell. Kraft Heinz fell 1.2 per cent.

The Standard & Poor’s 500 index rose 1 point to 2,508. The Dow Jones industrials added 41 points, or 0.2 per cent, to 22,412. The Nasdaq slipped 5 points to 6,456.

Bond prices fell. The yield on the 10-year Treasury note rose to 2.28 per cent.

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2:40 p.m.

Stocks are inching mostly lower on Wall Street after the Federal Reserve said it would start reducing its huge bond portfolio next month and was still on track to raise interest rates later this year.

High-dividend stocks like household goods makers and utilities fell the most Wednesday afternoon. Income-seeking investors find those stocks less appealing when bond yields move higher.

Kraft Heinz fell 1.8 per cent and NRG Energy lost 1.5 per cent.

Banks rose. Rising bond yields mean banks can charge higher interest rates on loans. Bank of America rose 1.4 per cent.

Bond prices fell, sending yields higher. The yield on the 10-year Treasury note rose to 2.28 per cent.

The Standard & Poor’s 500 index fell 4 points, or 0.2 per cent, to 2,502. The Dow Jones industrials were little changed.

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11:45 a.m.

U.S. stock indexes were mostly higher in midday trading ahead of the Federal Reserve’s latest economic and interest rate policy update.

Industrial companies, including airlines, led the gainers Wednesday. Johnson Controls rose 3 per cent and American Airlines rose 2.3 per cent.

Energy stocks also rose as oil prices headed higher. Technology stocks were down the most. Several packaged food companies also declined.

Bed Bath and Beyond plunged 15 per cent after reporting earnings and sales that missed analysts’ forecasts.

The Standard & Poor’s 500 index was up a fraction of a point at 2,507.

The Dow Jones industrial average rose 17 points, or 0.1 per cent, to 22,388. The Nasdaq composite fell 19 points, or 0.3 per cent, to 6,442.

Bond prices rose. The yield on the 10-year Treasury note fell to 2.24 per cent.

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9:35 a.m.

Stocks are narrowly higher in early trading on Wall Street as investors wait to hear from the Federal Reserve.

Energy stocks were rising along with the price of crude oil early Wednesday. ConocoPhillips gained 1.3 per cent.

Bed Bath and Beyond plunged 17 per cent after reporting earnings and sales that missed analysts’ forecasts.

Cereal maker General Mills was also down 8 per cent after reporting a disappointing quarter.

The Standard & Poor’s 500 index was little changed at 2,506.

The Dow Jones industrial average slipped 7 points, less than 0.1 per cent, to 22,363. The Nasdaq composite fell 5 points, or 0.1 per cent, to 6,456.

Three stocks rose for every two that fell on the New York Stock Exchange.

Bond prices rose. The yield on the 10-year Treasury note fell to 2.23 per cent.