BUSINESS US stocks open slightly lower amid Fed official's speech

BUSINESS

US stocks open slightly lower amid Fed official's speech

Xinhua

23:39, November 06, 2019

NEW YORK, Nov. 6 (Xinhua) -- U.S. stocks opened slightly lower on Wednesday, as Wall Street digested the morning speech of Chicago Federal Reserve President Charles Evans.

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Traders work on the floor of the New York Stock Exchange. (Photo: VCG)

Shortly after the opening bell, the Dow Jones Industrial Average dipped 24.50 points, or 0.09 percent, to 27,468.13. The S&P 500 lost 3.44 points, or 0.11 percent, to 3,071.18. The Nasdaq Composite Index erased 24.83 points, or 0.29 percent, to 8,409.85.

Six of the 11 primary S&P 500 sectors traded higher around market opening, with the energy sector up 0.45 percent, leading the winners.

Shares of CVS Health rose over 3.8 percent, after the healthcare giant reported higher-than-expected earnings for the third quarter, as driven by its strong health insurance business.

Shares of Wendy's also jumped around 1.35 percent, after the company posted third-quarter earnings that beat market estimates. The fast food restaurant chain also raised its full-year outlook for growth.

Evans said during a Wednesday event that the U.S. central bank's interest rates cuts have not been adequate to "change the dynamics substantially if there was a big negative shock."

"In terms of the mid cycle adjustment, I would say it's very much a risk management approach to ensuring the U.S. economy is positioned as well as it can be," he said at the Council of Foreign Relations, a nonprofit think tank in New York City.

U.S. stocks closed mixed on Tuesday, with the Dow hitting a new record high, as investors digested a set of upbeat data and the market was buoyed by continued hopes for improving U.S.-China trade ties.

The Dow Jones Industrial Average increased 0.11 percent to 27,492.63. The S&P 500 decreased 0.12 percent to 3,074.62. The Nasdaq Composite Index rose 0.02 percent to 8,434.68.

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