US close: Markets turn red ahead of Fed decision

US stocks closed just below the waterline on Monday as oil prices gained and investors looked ahead to the Federal Reserve’s interest rate decision later in the week.

Nasdaq 100

20,896.67

12:15 14/11/24

-0.66%

-139.49

The Dow Jones Industrial Average was last down 0.01% to 18,120.17 points, the S&P 500 was flat at 2,139.12 points and the Nasdaq 100 lost 0.46% at 4,796.07 points.

At the same time oil prices were on the front after Venezuela said OPEC and non-OPEC countries were nearing a deal to stabilise output.

According to press reports, Venezuelan President Nicolas Maduro said at a news conference: “We had a long bilateral meeting with [Iran’s president Hassan] Rouhani. We’re close to a deal between OPEC producer countries and non-OPEC.”

In addition, news that a military conflict in Libya over the weekend had affected its exports also helped to underpin prices.

West Texas Intermediate crude jumped 0.67%% to $43.32 per barrel and Brent advanced 0.35% to $45.93 per barrel.

Meanwhile, traders are awaiting Wednesday’s policy decision from the Federal Reserve, although the central bank is widely expected to keep interest rates unchanged. The Bank of Japan is also set to make its policy announcement on Wednesday.

“The respective decisions from the BoJ and FOMC will no doubt shape the look and feel of markets for weeks to come, yet realistically it is just the Japanese who stand any chance of raising rates on Wednesday,” said IG market analyst Joshua Mahony.

“Despite differing expectations, it makes sense that the BoJ will avoid anything too drastic with existing monetary stimulus leaving little room for manoeuvre.”

On the economic data front, a report showed sentiment among US homebuilders in September improved to its highest level since October last year. The National Association of Home Builders/Wells Fargo housing market index pushed up to 65 from 59 the month before, comfortably beating expectations for a reading of 60. This marked an 11-month high.

In company news, US-listed shares of French drug company Sanofi rose 0.7% as it filed a lawsuit against rival Merck & Co.’s international unit for alleged patent infringement.

Infoblox rallied up 15.42% on news that private-equity firm Vista Equity Partners plans to buy the network security company for $1.6bn.

Sarepta Therapeutics surged 73.85% after the Food and Drug Administration approved its Duchenne muscular dystrophy drug.

In after-hours trading, Ascena Retail Group lost 23.03% after closing the session in the green, after reporting quarterly earnings which disappointed investors.

Dow Jones - Risers

3M Co. (MMM) $176.72 0.95%
International Business Machines Corp. (IBM) $154.89 0.67%
American Express Co. (AXP) $64.06 0.63%
Boeing Co. (BA) $127.48 0.62%
Cisco Systems Inc. (CSCO) $31.02 0.58%
JP Morgan Chase & Co. (JPM) $66.19 0.56%
Visa Inc. (V) $82.51 0.54%
Travelers Company Inc. (TRV) $115.09 0.37%
Procter & Gamble Co. (PG) $88.37 0.36%
United Technologies Corp. (UTX) $100.44 0.34%