Telecoms and financials led the gains
US stocks ended in amixed note on Tuesday, 12 December 2017. The S&P 500 and the Dow closed at records for a fourth session in a row on Tuesday as the Federal Reserve kicks off its two-day meeting, but the Nasdaq bucked the trend to head south. The central bank's Federal Open Market Committee is widely expected to announce its third and final interest-rate hike of 2017 on Wednesday, but investors want to see what the policy-making body signals about 2018.
The Dow Jones Industrial Average advanced 118.77 points, or 0.5%, to 24,504.80. The S&P 500 rose 4.12 points, or 0.2%, to 2,664.11. The Nasdaq Composite slid 12.76 points, or 0.2%, to 6,862.32 as semiconductor stocks posted losses.
Telecoms and financials led the gains, while utilities and energy shares lagged behind.
The Fed's policy makers started their meeting on Tuesday and will announce their interest-rate decision at 2 p.m. Eastern time on Wednesday. The announcement will be followed by departing Fed chief Janet Yellen's last news conference in that role.
Economic data on Tuesday showed that a November reading on small-business confidence rose to its second-highest level on record. U.S. producer-price index jumped 0.4% in November and is up 3.1% over the past 12 months.
The ICE U.S. dollar index edged up on Tuesday. Bullion prices fell on Tuesday, 12 December 2017 at Comex. Gold prices fell Tuesday for a third-straight session, marking their lowest settlement in nearly six months ahead of the Wednesday Federal Reserve decision on interest rates and hints on the course for policy in 2018.
Gold futures ended the session lower as the leading dollar index edged higher and U.S. stocks traded mostly higher. Gold typically moves inversely to the dollar and stocks, as risk-on sentiment tends to lure investors away haven gold. February gold fell $5.20, or 0.4%, to settle at $1,241.70 an ounce. March silver declined by 0.7% to $15.668 an ounce, after losing around 3.5% last week.
Crude prices ended lower at Nymex on Tuesday, 12 December 2017. Prices for Brent crude oil, the global benchmark, pulled back on Tuesday after rallying to a 2-year high following news that a major North Sea pipeline would be shut down for weeks. Traders were wary of the uncertainty tied to the reopening of the pipeline.
February Brent crude fell $1.35, or 2.1%, to settle at $63.34 a barrel on ICE Futures Europe, giving back its Monday gain of 2% and then some. It had traded as high as $65.83 to touch levels not seen since mid-2015. January West Texas Intermediate crude shed 85 cents, or 1.5%, to end at $57.14 a barrel on the New York Mercantile Exchange, after settling 1.1% higher on Monday, at more than a one-week high.
In a monthly report issued Tuesday, the EIA raised its 2018 annual average U.S. crude output forecast to 10 million barrels a day, which would be the highest on record.
U.S. Treasuries ended the day mostly lower, but shorter-dated issues managed to eke out slim gains. The 2-yr yield slipped one basis point to 1.81%, while the benchmark 10-yr yield climbed two basis points to 2.40%. The three basis point increase in the 2yr-10yr spread helped fuel the financial sector's positive performance.
On Wednesday, investors will receive the weekly MBA Mortgage Applications Index at 7:00 ET and the November Consumer Price Index (consensus +0.4%) at 8:30 ET. The Fed will release its latest policy directive at 14:00 ET.
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