- Reuters, Wednesday April 28 2010
* S&P; downgrades Spain's debt rating
* IMF sees Greek aid worth 100 bln euros-German officials
* Investors await Fed statement on rates
* Dow up 0.3 pct, S&P; up 0.4 pct, Nasdaq down 0.2 pct
(Updates to midday, changes byline)
By Rodrigo Campos
NEW YORK, April 28 (Reuters) - Wall Street erased most
gains on Wednesday after Spain's rating was downgraded as
investors awaited Federal Reserve comments at the end of a
two-day policy meeting.
Standard & Poor's cut its key rating on Spain by one notch,
citing a more protracted period of sluggish growth than
previously expected. Jitters over sovereign debt problems have
hurt global equities and commodities.
U.S. bank shares rose, buoying the S&P; 500, with JPMorgan &
Co up 2 percent to $43.25, while the KBW bank index added 1.5
percent. Shares had rebounded earlier in the session after a
steep sell-off on Tuesday, following debt downgrades to Greece
and Portugal.
International Monetary Fund Managing Director Dominique
Strauss-Kahn estimated a Greek aid package at 100 billion to
120 billion euros, according to German officials. The news
partly eased concern over sovereign debt problems, but Spain's
downgrade brought back worries of contagion.
"The sovereign debt issues add discomfort," said Kurt
Brunner, portfolio manager at Swarthmore Group in Philadelphia.
"It gives investors some pause, as it should, so it's an
opportunity to sell."
The Dow Jones industrial average gained 31.66 points, or
0.29 percent, to 11,023.65. The Standard & Poor's 500 Index
added 5.21 points, or 0.44 percent, to 1,188.92. The Nasdaq
Composite Index dropped 4.63 points, or 0.19 percent, to
2,466.84.
About four stocks rose for every three that fell on the New
York Stock Exchange, while the number of advancers and
decliners was almost the same on the Nasdaq.
Investors awaited comments from the Federal Reserve Open
Market Committee, which is expected to hold interest rates near
zero and repeat its vow of very low rates for an extended
period. The statement is due at about 2:15 p.m. EDT.
Apple Inc and Amazon.com Inc weighed on the Nasdaq, with
Apple off 0.7 percent to $260.15 and Amazon down 1.4 percent to
$140.08.
Micron Technology Inc was off 3.4 percent at $9.98.
