US STOCKS-Wall St edges lower as Fed keeps stimulus in place

Wed Jan 30, 2013 2:51pm EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* Fed notes economic pullback, says likely temporary

* Amazon rallies after results, Boeing also up

* RIM changes name, unveils phones, shares fall

* Indexes: Dow off 0.1 pct, S&P off 0.1 pct, Nasdaq off 0.1 pct

By Angela Moon

NEW YORK, Jan 30 (Reuters) - U.S. stocks edged lower on Wednesday after the Federal Reserve left in place its bond-buying stimulus plan, saying economic growth had stalled but indicating the pullback was likely temporary.

Describing the U.S. job market as continuing its modest pace of improvement, the Fed repeated a pledge to keep purchasing securities until employment improves substantially.

The statement from the Fed follows data that showed the economy, as measured by gross domestic product, unexpectedly contracted in the fourth quarter. Economists stressed that the 0.1 percent contraction, caused partly by a plunge in government spending and lower business inventories, is not an indicator of recession.

"It is interesting that the Fed decided to focus on the GDP report, pointing to how activity slowed because of transitory factors. That sums up the GDP report. I am a bit puzzled why the Fed focused solely on one report. I would argue that this was a slightly dovish report," said Tom Porcelli, chief U.S. economist at RBC Capital Markets in New York.   Continued...