Stocks Closed Mixed ahead of Fed Meeting

U.S. stocks gave up most gains and closed mixed on Tuesday on hopes the Federal Reserve would take steps to stimulate the economy. The Dow Jones industrial average increased 7.65 points, or 0.07%, to 11,408.66. The S&P 500 shed 2.00 points, or 0.17%, to 1,202.09. The Nasdaq Composite was off 22.59 points, or 0.86%, at 2,590.24.

The Federal Reserve opened a two-day meeting on Tuesday that is expected to end with a decision to stock up on longer-term Treasury notes in a bid to boost a fading economic recovery.

Any effort by the United States to pare its massive public debt without bringing in more revenue and tackling expensive benefit programs will lack credibility, the International Monetary Fund said on Tuesday. To show U.S. creditors and markets the government is serious about reining in the country’s $14.7 trillion debt, the IMF said so-called entitlement programs, such as the Social Security retirement program, must be reformed.

A tentative contract between General Motors Co (NYSE:GM) and the United Auto Workers union would create more than 6,000 U.S. factory jobs, raise base wages for entry-level workers, and replace traditional wage increases with profit-sharing, union officials said on Tuesday.

HTC Corp is hoping to attract fashion-conscious customers by adding color and accessories to its smartphones as it tries to expand into a new market segment amid slowing growth.

Oil climbed to near $87 per barrel Tuesday on expectations that the Fed will announce new measures to stimulate the U.S. economy. Benchmark crude rose $1.11 to finish at $86.92 per barrel in New York. Brent crude, which is used to price oil produced in foreign countries, gained $1.40 to end at $110.54 in London.

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