Press Association
Sunday 12th February 2012
US Investors turned cautious on Monday ahead of the Federal Reserve's meeting on interest rates.
Major US stock indexes closed narrowly mixed after trading lower for most of the day.
An analyst upgrade of Wal-Mart Stores Inc helped lift the Dow Jones industrial average by about 18 points to its fifth straight gain.
Investors will be looking to the statement that follows the Fed meeting Tuesday for clues about the economic recovery and the central bank's plans for interest rates. Policymakers are almost certain to keep the Fed's benchmark rate unchanged at near zero.
While investors have been factoring in an eventual rate hike, any signs that the move will be made sooner rather than later could hurt stocks.
"The market is hoping that they will give us some sort of timeline as to when they will begin tightening monetary policy. I don't think that's very likely," said Scot Johnson, senior client portfolio manager with Invesco Fixed Income in Houston.
The market's cautious tone gave a boost to safe investments like the dollar. Its advance drove down energy prices and in turn, shares of energy companies.
Some of Monday's selling came in response to economic developments in China. Statements from Chinese officials about the nation's currency fed new concerns that China's efforts to slow its economy and curb inflation would hurt a global recovery.
According to preliminary calculations, the Dow rose 17.46, or 0.2%, to 10,642.15, its highest close since January 19.
The Standard & Poor's 500 index rose 0.52, or 0.1%, to 1,150.51, while the technology-dominated Nasdaq composite index fell 5.45, or 0.2%, to 2,362.21.
