US stocks fall as economy grows at meager pace
Source: AP-Excite
By STEVE ROTHWELL
NEW YORK (AP) — U.S. stocks dropped Wednesday following news that the economy skidded to a near halt in the first three months of the year, battered by harsh weather, plunging exports and sharp cutbacks in oil and gas drilling. Stocks stayed lower after the Federal Reserve downgraded its assessment of the economy and kept its key interest rate unchanged.
KEEPING SCORE: The Standard & Poor's 500 index fell eight points, or 0.4 percent, to 2,106, as of 2:11 p.m. Eastern. The Dow Jones industrial average fell 65 points, or 0.4 percent, or 18,042 points. The Nasdaq fell 32 points, or 0.7 percent, to 5,022.
US ECONOMY: The overall economy grew at a barely discernible annual rate of 0.2 percent in the January-March quarter, the Commerce Department reported Wednesday. That is the poorest showing in a year and down from 2.2 percent growth in the fourth quarter. Plummeting exports pulled growth down by nearly a full percentage point.
FED STATEMENT: The Fed gave no indication that it is any closer to raising a key rate from its six-year low near zero. Policy makers noted that growth had slowed, business investment softened and exports declined. In a statement after their two-day meeting, they repeated language that they need to be "reasonably confident" that low inflation will move back to its 2 percent target.
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FILE - This Oct. 2, 2014 file photo shows the Wall Street entrance of the New York Stock Exchange, in New York. U.S. stocks opened lower Wednesday, April 29, 2015, as the economy skidded to a near halt in the first three months of the year after being battered by harsh weather, plunging exports and sharp cutbacks in oil and gas drilling. (AP Photo/Richard Drew, File)
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