US close: Stocks end mostly higher as Fed stands pat on rates

The Dow Jones Industrial Average ended up 0.3% and the S&P 500 eked out a 0.2% gain, but the Nasdaq closed 0.5% lower.

The Federal Reserve chose to stay put on policy, leaving the target range for the Fed funds rate at between 0.25% and 0.50%, but left the door open to a rate rise in June.

In their statement, rate-setters called attention to the "solid" increase in households’ real, or inflation-adjusted, income and strong job gains. However, market-based measures of inflation compensation were described as still "low".

Rabobank said the key change in the formal statement of the FOMC was the removal of the line ‘However, global economic and financial developments continue to pose risks.’

“This clearly indicates that the Committee still sees June as a viable date for the next rate hike,” it said.

Rabobank said the statement was hawkish overall, in line with its expectations that the Fed had to push back against market views that have been pricing in barely one rate hike this year.

“Nevertheless, the statement still allows the FOMC the possibility to delay the next rate hike to September if the data between now and mid-June continue to disappoint.”

In economic news, official figures showed the US trade deficit in goods shrank to $56.9bn in March, a 10.3% improvement on February’s final reading of $63.4bn. The figures from the Commerce Department marked the lowest deficit in more than a year.

US pending home sales increased more than expected in March to reach their highest level in nearly a year, the National Association of Realtors said. The pending home sales index, based on contracts signed last month, climbed 1.4% to 110.5.

Meanwhile, oil prices settled higher after data showed a surprise fall in US oil inventories.

The American Petroleum Institute said US crude inventories decreased by 1.1 million barrels last week, versus expectations of a 0.8m build.

West Texas Intermediate rose 2.7% to $45.24 per barrel and Brent gained 3.1% to $47.16 per barrel.

In company news, Apple fell sharply after the US technology giant reported first-quarter results late on Tuesday that revealed the first drop in revenue in 13 years as iPhone sales fell for the first time ever.

“Apple’s had its critics from day-one who said that it was a one-trick pony and that iPhone sales couldn’t rise indefinitely, so after 13 years they’ve got it right. Investors will be looking for evidence that this is just a blip caused by tough yearly comparisons because of the launch of the iPhone 6 and that demand will pick up once the new iPhone 7 is released,” said CMC Markets’ Jasper Lawler.

“Nonetheless, it does appear Apple has reached an inflexion point. Apple now needs a new ground-breaking product, like a car, to justify a higher price multiple.”

Twitter was also sharply lower after its first-quarter revenue of $595m missed analysts’ expectations, while Chipotle Mexican Grill slumped after reporting its first quarterly loss as a public company.

On the upside, Boeing climbed after leaving its full year profit and revenue unchanged despite reporting a 9% decline in first quarter profit due to an after-tax charge from the KC-46 aerial refueling tanker it is developing for the US Air Force.

S&P 500 - Risers

Boston Scientific Corp. (BSX) $21.89 +11.17%

Freeport-McMoRan Inc (FCX) $12.65 +10.19%

Chesapeake Energy Corp. (CHK) $7.14 +8.18%

Transocean Ltd. (RIG) $11.16 +8.14%

National Oilwell Varco Inc. (NOV) $31.70 +7.93%

Assurant Inc. (AIZ) $85.33 +7.59%

Devon Energy Corp. (DVN) $36.91 +6.61%

FMC Technologies Inc. (FTI) $30.35 +6.49%

Alcoa Inc. (AA) $11.31 +6.10%

Cabot Oil & Gas Corp. (COG) $24.07 +5.52%

S&P 500 - Fallers

H&R Block Inc. (HRB) $20.59 -13.56%

Robert Half International Inc. (RHI) $39.13 -12.26%

Goodyear Tire & Rubber Co. (GT) $30.34 -7.44%

Chipotle Mexican Grill Inc. (CMG) $417.22 -6.44%

Apple Inc. (AAPL) $97.81 -6.27%

CH Robinson Worldwide Inc (CHRW) $71.81 -5.15%

Under Armour Inc. Class A (UA) $44.80 -4.17%

Regeneron Pharmaceuticals Inc. (REGN) $390.28 -4.03%

Public Storage (PSA) $248.21 -3.35%

Borg Warner Inc. (BWA) $38.62 -3.28%

Dow Jones I.A - Risers

Boeing Co. (BA) $137.08 +2.88%

Verizon Communications Inc. (VZ) $51.69 +2.48%

Chevron Corp. (CVX) $103.85 +1.53%

Caterpillar Inc. (CAT) $78.68 +1.33%

Intel Corp. (INTC) $31.75 +1.11%

United Technologies Corp. (UTX) $105.89 +1.04%

3M Co. (MMM) $167.76 +0.95%

Exxon Mobil Corp. (XOM) $88.46 +0.95%

International Business Machines Corp. (IBM) $150.47 +0.93%

Cisco Systems Inc. (CSCO) $28.64 +0.67%

Dow Jones I.A - Fallers

Apple Inc. (AAPL) $97.81 -6.27%

Unitedhealth Group Inc. (UNH) $132.80 -1.07%

Microsoft Corp. (MSFT) $50.94 -0.97%

Nike Inc. (NKE) $59.27 -0.45%

Travelers Company Inc. (TRV) $109.53 -0.40%

Pfizer Inc. (PFE) $33.00 -0.15%

Johnson & Johnson (JNJ) $112.77 -0.12%

E.I. du Pont de Nemours and Co. (DD) $67.47 -0.12%

Nasdaq 100 - Risers

Akamai Technologies Inc. (AKAM) $54.85 +4.16%

Western Digital Corp. (WDC) $46.08 +3.46%

Mondelez International Inc. (MDLZ) $43.88 +3.25%

eBay Inc. (EBAY) $25.27 +3.18%

Nxp Semiconductors Nv (NXPI) $88.94 +2.60%

Express Scripts Holding Co (ESRX) $76.06 +2.42%

Nvidia Corp. (NVDA) $37.31 +2.28%

PACCAR Inc. (PCAR) $60.23 +2.21%

Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $212.52 +2.11%

Fastenal Co. (FAST) $47.44 +2.07%

Nasdaq 100 - Fallers

Apple Inc. (AAPL) $97.81 -6.27%

Regeneron Pharmaceuticals Inc. (REGN) $390.28 -4.03%

Electronic Arts Inc. (EA) $63.35 -3.03%

Activision Blizzard Inc. (ATVI) $34.36 -2.41%

Alexion Pharmaceuticals Inc. (ALXN) $150.78 -2.10%

Endo International Plc (ENDP) $28.88 -2.00%

Charter Communications Inc. (CHTR) $206.43 -1.73%

Amazon.Com Inc. (AMZN) $606.57 -1.67%

Incyte Corp. (INCY) $73.19 -1.67%

Netflix Inc. (NFLX) $91.04 -1.50%