Stocks End Lower Ahead of Fed Debate

U.S. stocks ended lower on Monday as investors took a cautious stance before a Federal Reserve meeting this week that could signal when the Fed might begin to alter its stimulus plans. The Dow Jones Industrial Average shed 36.86 points, or 0.24%, to
15,521.97. The S&P 500 Index dropped 6.32 points, or 0.37%, to 1,685.33, The Nasdaq Composite declined 14.02 points, or 0.39%, to 3,599.14.

The Federal Reserve meeting, which concludes Wednesday, is the “wild card” for markets given widely held expectations the policy-setting Federal Open Market Committee won’t make major changes to its policy statement.

A U.S. judge ruled on Monday that Federal Reserve Chairman Ben Bernanke should testify in the multibillion-dollar lawsuit by the former chief of American International Group Inc (AIG), Maurice “Hank” Greenberg, against the United States over the
insurer’s 2008 bailout.

AMR Corp’s American Airlines and US Airways will win EU approval for their $11 billion (7 billion pounds) merger to become the world’s largest carrier after agreeing to cede slots on a transatlantic route, three persons familiar with the matter said on
Monday. The airlines offered to give up slots at Heathrow and Philadelphia airports earlier this month after the European Commission raised competition concerns over the route.

CF Industries Holdings Inc. (NYSE:CF) shares jumped nearly 11% on Monday after Third Point Management revealed a position in the firm in its quarterly investment letter.