US open: Stocks mixed on Fed rate hike, US data

US stocks were mixed on Thursday as traders continued to process the Federal Reserve’s decision to raise interest rates for the first time in nearly a decade.

At 1504 GMT, the Dow fell 0.10%, the Nasdaq rose 0.04% and the S&P 500 slipped 0.04%.

The Fed on Wednesday evening decided to raise interest rates by 25 basis points to 0.50%, as expected by analysts.

Speaking at a press conference after the policy announcement Yellen assured the market that any future rate increases would be gradual and would depend on economic growth.

Yellen said if the Fed had continued to delay a rate rise it could have been forced to implement a more aggressive increase if economic growth soared and inflation suddenly jumped towards the 2% target.

“Overall, we believe Fed and Chair Janet Yellen succeeded in being neither too hawkish nor too dovish, which is reflected in the muted market reaction,” according to Dankse Bank analysts.

“We stick to our view that the Fed will hike three times in 2016 and four in 2017.”

In Thursday’s news, US third quarter current account deficit widened to its highest level in nearly seven years, according to data from the Commerce Department.

Official figures showed the deficit increased 11.7% to $121.4bn as US exports fell due to a stronger dollar, making it the biggest shortfall since the final quarter of 2008 and larger than economists had expected.

The Philadelphia Federal Reserve manufacturing index fell into negative territory in December. The gauge dropped to -5.9 from 1.9 last month, marking the third negative reading in the past four months and weaker than analysts’ expectations for a reading of 1.

The number of first time unemployment benefits claimants in the US fell last week, according to data from the Department of Labor. New claims fell by 11,000 to a seasonally-adjusted 271,000, coming in a little better than expectations of 275,000.

Meanwhile, oil prices were mixed in volatile trading, with Brent crude up 0.16% to $37.45 per barrel and West Texas Intermediate fell 1.2% to $35.09 per barrel at 1505 GMT. The US Energy Information Energy on Wednesday said that domestic oil inventories rose by 4.8m barrels last week, compared to analysts’ estimate for a decrease, adding to concerns about an oversupply in the market.

The dollar strengthened against main currencies, including the Japanese yen by 0.38%, the euro by 0.60% and the pound by 0.65%.

In company news, Apple named Jeff Williams as its new chief operating officer.

Pandora Media Inc. gained after a US ruling said rates for non-subscription services will rise to 17 cents per 100 plays from a current rate of 14 cents, much less than investors had anticipated.

Avon Products Inc. jumped after the beauty products company said it entered into agreements with Cerberus Capital Management that include a $605m investment by Cerberus affiliates.

General Mills Inc. dropped after the food company posted earnings and sales that fell short of analysts’ expectations.

Pier 1 Imports plunged after the home goods retailer cut its full year earnings guidance.

FedEx Corp. was a high riser after the package delivery reported quarterly earnings that beat forecasts.