US Stocks Surrender Gains After Fed Decision

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US market indexes were higher on Wednesday.

"If the Atlanta Federal Reserve forecast that US first-quarter growth could be as high as 5.4% proves true, Treasury yields and confidence will nearly certainly soar, but such a strong first quarter GDP figure would also make a rate hike in March by the US Federal Reserve a foregone conclusion, so be careful what you wish for", he added.

Friday brings the pivotal labor market report with January non-farm payrolls expected to increase by 175,000, average hourly earnings forecasted to increase by 0.3% and the jobless rate to stay unchanged at 4.1%.

The Dow Jones average was down 402 points at 25,784 and the S&P 500 was 36 points at 2,786 as the value of the USA dollar rose by an average of 0.5% on foreign exchange markets.

The Standard & Poor's 500 index gave up 30 points, or 1.1 percent, to 2,791.

Losses in health care stocks were offset by gains in technology companies and other sectors.

Nasdaq 100 futures climbed 0.4%, as Apple (AAPL) dragged lower and despite gains by all four FANG stock tech leaders.

Some investors said a positive earnings and economic backdrop remains intact, though concerns about higher inflation and less accommodative central-bank policy have become more pronounced recently. Australia's S&P/ASX 200 rose 0.8 percent to 6,083.60.

But market players are not convinced that the bull market in stocks that saw the S&P 500 rise 5.6 percent in January is over.

Drugmaker Eli Lilly posts quarterly loss on tax charges
In other news, SVP Susan Mahony sold 36,585 shares of Eli Lilly and stock in a transaction dated Monday, December 4th. The Garcia Hamilton & Associates Lp holds 3,567 shares with $305,000 value, down from 7,717 last quarter.

Still, "the movement in stocks since the beginning of the year has been remarkable", she added.

Alphabet fell 5.3 percent after the Google parent's fourth-quarter profit came in below consensus on increased spending.

Elsewhere, the Stoxx Europe 600 swung between small gains and losses and closed down 0.2% following its biggest daily fall of the year.

ENERGY: Benchmark U.S. crude fell 14 cents to $64.36 per barrel on the New York Mercantile Exchange.

The Dow fell 515 points, or 2 percent, to 25,675. Brent crude, used to price worldwide oils, declined 16 cents to $68.36 in London.

The Russell 2000 is up 44.36 points, or 2.9 per cent.

Security services provider Avigilon accepted a C$27 a share offer from Motorola, prompting its shares to rise 18.1% in Toronto to US$26.95. Japan's Nikkei ended down 0.8% as the yen strengthened against the dollar. But Hong Kong's Hang Seng index dipped 0.1 percent to 32,843.20 and China's Shanghai Composite Index lost 0.9 percent to 3,449.93. Brent crude, used to price global oils, gained 76 cents, or 1.1 percent, to close at $69.65 per barrel in London.

The Dow is down 430 points, or 1.6 per cent. S&P 500 futures were ahead 0.5%.