Markets end mixed

First Posted:

The Associated Press

NEW YORK — Stocks ended mixed but little changed Tuesday, one day after a sell-off. Traders are looking for the Federal Reserve to outline its expectations for the economy and signal when it might raise interest rates. The Fed’s two-day meeting ends today.
Traders reacted coolly to a report from the National Association of Realtors that May sales of existing homes rose 2.4 percent. The increase was smaller than economists’ forecast for 2.8 percent, and not enough to alleviate investors’ anxiety about economic reports later in the week on durable goods orders, new home sales and personal spending.
“There’s not a lot of conviction on behalf of buyers,” said Jim Herrick, manager of equity trading at Baird & Co.
The Fed is widely expected to keep its key interest rate near zero, but investors are unsure how optimistic the policymakers will be in their economic assessment, and whether the central bank will consider raising rates later this year to curb inflation.
Meanwhile, the market was also following the week’s $104 billion in Treasury auctions. The government sold $40 billion in debt Tuesday amid strong demand. Investors have been on edge during such auctions because any signs that a desire for government debt is waning could hit the market.
Treasury demand needs to stay strong for the government to finance its bailout and stimulus programs without significantly raising yields. Bond yields affect borrowing rates for consumers.
The recent selloff has brought very little volatility, and that’s a positive sign, said Scott Fullman, of WJB Capital Group in New York.