Stocks end mixed despite strong earnings reports

Virus concerns draw back early rally; benchmark rate staying put

Major U.S. stock indexes ended mixed Wednesday after an early rally powered by strong gains in technology companies faded in the final minutes of trading.

Investors continued to assess quarterly reports from big companies, including solid results from General Electric and Apple. GE stock jumped 10.3% while Apple shares rose 6.6% to an all-time high of $324.34.

Norfolk Southern climbed 5.6% after the railroad reported surprisingly good fourth-quarter profits on cost cuts to counter weak demand for freight hauling.

Microsoft reported quarterly results after the close of regular trading that topped Wall Street estimates.

Stocks barely budged after Federal Reserve announced it is leaving its benchmark interest rate unchanged at a low level. The move, which was widely expected, reflects the central bank’s mostly positive view of the U.S. economy.

“They seem to have gotten the porridge temperature just about right,” said Tom Martin, senior portfolio manager with Globalt Investments. “Inflation isn’t budging one way or the other. Same thing with unemployment. Same thing with wage growth.”

The S&P 500 index fell 0.1%, to 3,273. The index had earlier been up by 0.5%. The Dow edged up less than 0.1% to 28,734. The Nasdaq also added 0.1%, to 9,275. The Russell 2000 index of smaller company stocks slid 0.5%, to 1,649.

Despite a rally Tuesday, stocks have been mostly pulled lower this week amid investor jitters over the coronavirus outbreak. The virus has infected more than 6,000 in China and elsewhere. Speaking to reporters Wednesday, Federal Reserve Chairman Jerome Powell acknowledged that there’s a risk the outbreak could slow the global economy.

The central bank also said it would hold short-term rates in a range of 1.5% to 1.75%, far below levels that were typical during previous expansions.

■ Labor market: Unemployment is at a halfcentury low, and labor force participation is rising.

■ Homebuyers: After more than a year of weighing on growth, a housing rebound is expected to soften the blow from another quarter of lackluster nonresidential investment.

■ Trade: Net exports could add 1.7 percentage points to GDP, offsetting a drag from inventories, according to Citigroup analysts. The outsize contribution would be the most since 2009.

JOHN MINCHILLO / ASSOCIATED PRESS A market rally on strong quarterly reports from big companies such as General Electric cooled after the Fed chairman spoke about the economic threat from the coronavirus outbreak.