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Treasury yields tumbled Wednesday afternoon, after the Federal Reserve took a more dovish tone in its January policy statement than investors had expected. The U.S. central bank said that economic growth slowed since its last meeting in December and that inflation is unlikely to rise rapidly toward its 2% target. The news fueled demand for Treasury bonds, as it was interpreted as an indication that the central bank won’t be quick to raise interest rates again. The yield on the 10-year Treasury note fell nearly four basis points after the statement, to 2.010%. The yield on the 2-year Treasury turned negative, lost nearly 3 basis points to 0.853%. The yield on the 30-year bond, known as the long bond, lost around two basis points to 2.803%. Treasury yields fall when prices rise and vice versa.

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U.S. stocks added to modest gains on Wednesday after the Federal Reserve left interest rates unchanged. The S&P 500 was up 12 points, or 0.6%, at 1,915. The Dow Jones Industrial Average gained 54 points, or 0.3%, to 16,212. Meanwhile, the Nasdaq Composite was still 13 points, or 0.3%, lower at 4,552.

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WASHINGTON (MarketWatch) – The Federal Reserve on Wednesday said “economic growth slowed” since its last meeting in December and that inflation is unlikely to rise rapidly toward its 2% target, a more dovish tone that suggests the bank won’t be quick to raise interest rates again. “Inflation is expected to remain low in the near term,” The Fed said in new, more cautious language. The central bank also alluded to stock market turmoil in the U.S. and China, saying it “is closely monitoring global economic and financial developments.” Yet despite a more subdued near-term outlook, the Fed said it expects the economy to continue to grow “at a moderate pace,” helped by a strengthening labor market. The vote was 10-0.

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DeVry Education Group Inc. shares tumbled 17% Wednesday, after the Federal Trade Commission said it is bringing an enforcement action against the for-profit education company. The FTC said it has a filed a suit against DeVry, alleging that it deceived students with promises they would find jobs that would pay more than they would earn with degrees from other colleges. “Educational institutions like DeVry owe prospective students the truth about their graduates’ success finding employment in their field of study and the income they can earn,” FTC Chairwoman Edith Ramirez said in a statement. The FTC said DeVry claimed that 90% of its graduates land jobs within six months of completing their studies, and that they earned 15% more on average than others. Shares have fallen 55% in the last 12 months, while the S&P 500 has lost about 7%.

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Russia’s state-owned oil pipeline company Transneft said Russia and the Organization of the Petroleum Exporting Countries will discuss possible oil output cuts, Reuters reported Wednesday, citing Russian news agency TASS. Prices for oil had already turned higher in the wake a U.S. report that showed a hefty weekly increase in crude supplies, but also revealed a fall in domestic oil production. March West Texas Intermediate crude was up 93 cents, or 3%, at $32.38 a barrel on the New York Mercantile Exchange. March Brent on the ICE Futures exchange added $1.18, or 3.7%, to $32.98 a barrel.

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From:: Stock Market News

Boeing Co.’s stock was on track Wednesday to suffer the biggest-ever one-day price drop in the aerospace giant’s 44-year history as a public company, in the wake of a disappointing 2016 profit outlook. The stock plunged $12.36, or 9.7%, in morning trade, on course for the lowest close since October 2013. That price drop is shaving about 85 points off the price of the Dow Jones Industrial Average , which was down 131 points. The stock’s percentage decline would be the biggest since October 2001, according to FactSet data. Analyst Robert Stallard at RBC Capital wrote in a note to clients that although he doesn’t believe Boeing’s downbeat outlook will change the company’s current plans to return cash to shareholders, “it could create doubt” as to the sustainability of those plans. He said the plans don’t include any impact for an downturn in the aerospace market, “if this should occur at some point before the end of this decade.”

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From:: Stock Market News

American Airlines Group was upgraded to buy from neutral at UBS on expectations that passenger revenue will increase on an improving balance between supply and demand during the first half of 2016. Still, the bank lowered the company’s price target to $46 from $48 based on a valuation multiple that the bank said “remains down near historical trough level.” Analysts said American Airlines will be one of the biggest beneficiaries of slower industry capacity growth. Travel demand will remain largely stable while the decelerating growth in the number of seats available where American flies will be high. The airline has been underperforming the industry on passenger revenue, with a market forecast of a 5% to 7% first-quarter decline at American, UBS wrote in a Wednesday note. American announces fourth-quarter 2015 earnings on Jan. 29 and first-quarter 2016 earnings on Apr. 22. UBS expects passenger revenue to decline in the 3% to 5% range in the first quarter and improve in the second quarter. Shares are up 0.8% in morning trading, but down 24.2% for the past 12 months. The S&P 500 is down 6.6% for the same period.

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From:: Stock Market News