Stocks open lower, led down by energy, tech

Specialist Paul Cosentino, foreground, works with traders at his post on the floor of the New York Stock Exchange, Wednesday, Jan. 27, 2016.

“The committee is closely monitoring global economic and financial developments and is assessing their implications for the labour market and inflation”, the Federal Open Market Committee, the Fed’s policy-setting group said in a statement.

European shares climbed, while US stocks fell in early trade on Wednesday, after investors reacted to disappointing earnings forecasts from heavyweights Apple and Boeing, with all eyes on the US Federal Reserve’s first policy statement since raising interest rates. Apple also said iPhone sales set another record in its latest quarter, but sales growth slowed down. Apple also predicted its first revenue decline in 13 years. The Dow Jones industrial average fell 1.4 percent to 15,944.46 and the Standard & Poor’s 500 dropped 1.1 percent to 1,882.95.

ASIA’S DAY: The Shanghai Composite Index fell 4 percent by midday before recovering to end down 0.5 percent at 2,735.56, adding to Tuesday’s 6.4 percent loss.

Fed Vice Chair Stanley Fischer recently said he continues to see four rate hikes this year, but few analysts think the central bank is prepared to tighten that aggressively.

Indeed, with the USA stock market off to one of its worst starts in history, oil prices wildly volatile, China fears still reverberating and growth worries on the rise, Wall Street is seriously second-guessing whether now really is the right time for the Fed to hike rates at the pace it has hinted at since mid-December when it raised short-term rates for the first time since 2006. The Dow fell as much as 179 points.

Using new, more cautious language, the Fed said it was watching markets and projected “only gradual increases in the federal funds rate”. That’s partly because investors are worrying about the global economy as growth in China slows down.

Biogen Inc. jumped 6.6% after the biotech company’s fourth-quarter.

West Texas Intermediate, the benchmark North American contract, rose 43 cents to $31.88 USA a barrel, and Brent, the main global contract, was up 84 cents at $32.65.

Chalupnik, speaking shortly before the Fed released its latest policy statement, said he thinks the Fed will raise its key rate only one time this year, at its policy meeting in June. Oil declined anew today, helping send Schlumberger Ltd. down 1.2 percent. Textron, which makes Cessna planes and Bell helicopters, also tumbled after its fourth-quarter profit and sales disappointed investors.

The U.S. dollar index, which gauges the greenback against six currencies, was down 0.5 per cent at 98.878. The company said Tuesday that its revenue could fall at least 8.6 percent during the January-March quarter, compared with a year earlier.

As Apple’s share price drops, Alphabet Inc.(GOOGL) (GOOGL) is closing the gap in stock-market value (http://www.marketwatch.com/story/as-apple-shares-sink-alphabet-closes-in-on-market-cap-2016-01-27) and could soon challenge for the crown of world’s most valuable company.

USA crude oil advanced 85 cents to $32.30 a barrel.

MORE MCMORAN: Freeport-McMoRan continued to climb, picking up 68 cents, or 16.2 percent, to $4.88. The copper and energy company rose nearly 7 percent Tuesday after it announced plans to cut spending and production and eliminate more jobs. Activist investor Carl Icahn disclosed he bought a stake in it. The stock traded above $18 a year ago.

TOTAL SYSTEM SLIDES: Electronic payment services provider Total System Services fell $5, or 10.9 percent, to $41 after its earnings fell short of estimates and it gave a weak profit forecast. The euro rose to $1.0882 from $1.0853 and the dollar was little changed at 118.47 yen.

OVERSEAS: France’s CAC-40 added 0.5 percent while Germany’s DAX rose 0.6 percent.

In Europe, the Stoxx 600 Index ended the session with a 0.3 percent increase from the previous close.