US Stocks Turn Higher as Apple Drags

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US Stocks Turn Higher as Apple Drags

On Tuesday, US stocks were on the rise with the energy stocks reaching their best day in over a month and the prices of crude bounced back.

Apple shares suffered a 1.7% decline. However, this did not affect the tech sector of the S&P and it put pressure on the Nasdaq.

Traders are eyeing the two-day meeting of the Federal Reserve policy, which began Tuesday, to know the direction of the United States’ short term interest rates. A statement is expected to be released by the Fed on Wednesday 2:00 p.m. EDT.

Reuters reported that the Dow Jones Industrial Average increased 0.22% or 37.93 points to 17,069.07, the S&P 500 gained 0.34% or 6.65 points to 1,990.78 while the Nasdaq Composite gained 0.09% or 3.88 points to 4,522.78.

Glimcher Realty was the largest gainer on the New York Stock Exchange, after gaining 29.53% after an announcement by Washington Prime about a $4.3 billion acquisition of Glimcher. The largest decliner was Atlantic Power, who was down 33.60% saying that it reported that it would slash the dividend and CEO.

Some of the stocks that were the most active were Bank of America, which was unchanged at $16.74 and Petrobras, standing at $17.85 after gaining 7.92%.

According to Market Watch, Schaeffer’s Investment Research senior equity analyst, Joy Bell point out that there have been no dramatic selloffs in the market and consolidation is a logical step after August’s strong rally.

Bell said, “Markets are pricing in the beginning of interest rate hikes at spring-summer of 2015 and whether it will be in April or August does not make much difference.”

Alain Bokobza, Societe Generale global head of Asset Allocation told investors to “switch out of expensive, illiquid and over-owned assets.” He wrote, “As the Fed continues to normalize its monetary policy, small caps are at risk of a large correction.”

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To contact the reporter of the story: Jonathan Millet at john@forexminute.com