* S&P 500 falls, a day after hitting record highs
* Fed sticks to bond-buying plan
* U.S. and China manufacturing data weighs on oil prices
By Caroline Valetkevitch
NEW YORK, May 1 The dollar cut losses against
the yen while U.S. stocks briefly pared declines after the
Federal Reserve said it was sticking with its monetary stimulus
plan to push down borrowing costs and prop up the economy.
U.S. Treasury yields rose slightly off their lows after the
Fed statement. Earlier, the benchmark 10-year note yield hit the
lowest intra-day level so far this year.
Commodities remained sharply lower, with oil falling sharply
after manufacturing data from both the United States and China,
the world's two biggest energy consumers, raised new doubts
about the strength of the global economy.
The U.S. central bank stuck to its plan to buy $85 billion
in bonds each month, citing risks to the economy from recent
budget tightening in Washington.
"That the Fed won't end QE (quantitative easing) any time
soon is positive for stocks in the near term, but the data we've
seen is creating a lot of angst for investors," said Mike Gibbs,
co-head of the equity advisory group at Raymond James in
Among recent weak data, payrolls processor ADP reported
Wednesday that private employers added 119,000 jobs in April,
well below economists' expectations for 150,000 new jobs.
The dollar surged to its best levels during the New York
trading day, reaching 97.53 yen, a small gain on the session,
from 97.17 yen just prior to the Fed's statement. However it
immediately started to drift lower and was last trading at 97.29
yen, off 0.13 percent on the day.
The Dow Jones industrial average was last down 87.07
points, or 0.59 percent, at 14,752.73. The Standard & Poor's 500
Index was down 8.48 points, or 0.53 percent, at 1,589.09.
The Nasdaq Composite Index was down 17.14 points, or
0.51 percent, at 3,311.65.
MSCI's world equity index was down 0.4
The benchmark 10-year Treasury note was last up
11/32, with the yield at 1.6341 percent. Earlier yields eased to
1.619 percent, the lowest intra-day level so far this year.
Brent crude futures were down $3.50 at $99.87 a
barrel. U.S. oil was down $2.37 at $91.09.
U.S. data showed the pace of manufacturing growth slowed in
April. Also, growth in China's manufacturing sector unexpectedly
slowed in April, with the official purchasing managers' index
coming in at a reading of 50.6 after hitting an 11-month high of
50.9 in March as new export orders fell.