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NEW YORK – Stocks traded in a tight range Wednesday as investors turned their attention to the Federal Reserve after there were few surprises in the midterm elections.

The Dow Jones industrial average fell 26 points in midday trading, but still near its highest closing level in more than two years. Broader indexes also fell slightly.

By the end of the day, investors will likely know exactly how much the Fed plans to spend to stimulate the economy. The central bank has hinted for two months it plans to buy Treasurys to drive interest rates lower in an attempt to spark lending and spending. However, there was still plenty of debate about the size and length of the program, particularly in the past few days.

Lawrence Creatura, a portfolio manager at Federated Investors, said the market has factored in expectations that the Fed will buy $500 billion or less of Treasury bonds. A bigger program would most likely drive stocks higher, though there is a small possibility it could spook investors' views about the health of the economy, Creatura said.

The Fed is expected to announce details of its plan when it wraps up its meeting Wednesday afternoon. Treasury prices rose slightly, sending interest rates lower ahead of the announcement.

The Dow started with slight gains before drifting lower. It was down 26.41 or 0.2 percent at 11,162.31 in midday trading.

The Dow has been flirting with its highest closing level of the year, which was 11,205.03 on April 26. If it can close above that level, it would be the Dow's best finish since September 2008, just before the financial crisis peaked.

The Standard & Poor's 500 index fell 3.86, or 0.3 percent, to 1,189.71, while the Nasdaq composite index fell 12.09, or 0.5 percent, at 2,521.43.

The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 2.54 percent from 2.59 percent late Tuesday.

Key economic reports that would have normally affected trading are being overshadowed by the Fed's meeting.

Payroll company ADP said private employers added 43,000 jobs last month after cutting jobs in September, which usually would have driven buying in the market. The report is seen as a gauge heading into the government's monthly employment report, which is due out Friday. ADP indicating a rise in employment bodes well for the government saying private employers ramped up hiring, at least somewhat, last month.

The Institute for Supply Management said growth in the service sector accelerated last month when economists were expecting a slowdown in the pace of expansion. That too would normally have provided stocks a lift.

The ISM report is closely watched because the service sector accounts for about 80 percent of the nation's jobs. Earlier this week, ISM said the growth in the manufacturing activity also accelerated last month.

There were no major surprises in Tuesday's midterm elections that should sway trading Wednesday. Analysts said the market had largely accounted for Republicans taking control of the House of Representatives and Democrats holding onto a slim margin in the Senate.

Over the longer term, investors will want to see more clarity from Capitol Hill about taxes and the costs of health care and financial regulatory reform bills that passed through Congress earlier this year.

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NEW YORK – Stock wavered Friday after a report on economic growth did little to reassure investors about the health of the economy.

The Dow Jones industrial average fell about 20 points in midday trading.

Gross domestic product, the broadest measure of the nation's economy, grew at a 2 percent annual pace in the third quarter. That was in line with economists' expectations and only slightly better than the 1.7 percent growth rate during the second quarter.

Signs of meager growth come as investors grow more cautious heading into next week's midterm elections and are uncertain about the size of economic stimulus measures the Federal Reserve is expected to announce next week.

Normally such slow GDP growth would have driven stocks much lower. But signs of weak economic expansion provide further support for the Fed's anticipated stimulus plan.

"Because GDP was so lackluster, we don't see the Fed pumping the brakes" on its plan, said Tony Zabiegala, a partner at Strategic Wealth Partners.

Stocks rose sharply during the first half of October as expectations mounted that the Fed would start buying Treasury bonds to drive interest rates lower. That, in turn, is supposed to spark spending and lending. In recent days, however, the size of the bond-buying program has been questioned, putting a market rally on hold.

John Apruzzese, a partner and portfolio manager at Evercore Wealth Management, said reaction in anticipation in the program is typical of the market.

"This is a classic situation where all the market movement is done in anticipation," Apruzzese said.

The market could be stuck in a holding pattern until the Fed wraps up its meeting Wednesday where it is expected to announce details about the bond-buying program.

A day before the Fed completes its meeting, voters will head to the polls for the midterm elections. Traders have been betting that Republicans will at least take control of the House of Representatives, which could slow government action.

Analysts say uncertainty over tax issues and potential costs from health care and financial regulation reform bills have been major reasons employers have been hesitant to start hiring new workers. The results of the election should provide more clarity about those questions.

With so many people unsure about their jobs, they have cut back on their spending, which accounts for the biggest piece of the nation's economy. While the latest GDP report showed a rise in consumer spending, its still well below pre-recession levels.

The Dow rose fell 19.19, or 0.2 percent, to 11,094.61 in midday trading.

The Standard & Poor's 500 index fell 1.99, or 0.2 percent, to 1,181.79, while the Nasdaq composite index rose 2.38, or 0.1 percent, to 2,509.75.

Bond prices rose slightly following the GDP report. The yield on the benchmark 10-year Treasury note fell to 2.62 percent from 2.66 percent late Thursday.

Another batch of earnings news came in mixed. Microsoft Corp. rose after reporting higher income late Thursday, while Merck & Co. and Chevron Corp. fell following disappointing results. Merck was hurt by disappointing revenue figures, while Chevron fell short of earnings forecast after charges tied to foreign exchange.

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NEW YORK – Vacillé Stock Friday after a report on economic growth have little to reassure investors about the health of the economy.

The Dow Jones industrial average fell to about 20 points in afternoon trade.

Gross domestic product, the extent of the nation's economy has increased to 2 annual percentage rate in the third quarter .c ' is consistent with the expectations of economists and only slightly better than the growth rate of 1.7% in the second quarter.

Signs of lean growth as investors grow a more conservative position in midterm elections next week and no are unclear of the size of the Federal Reserve economic stimulation measures should announce next week.

Normally this slow growth of GDP would have resulted more low stocks.But the signs of low economic growth further support planned stimulus plan the Fed.

"Because the GDP was so poor, we see the Fed pumping the brakes" on its plan, said Tony Zabiegala, a partner with strategic partners of wealth.

Pink stocks sharply during the first half of October as expectations that the Fed will begin to buy bonds from the Treasury Board to lower interest rates drive mounted.In turn, is supposed to stimulate spending and prêt.Ces days, however, the size of the bond purchase programme has been challenged, develop a market rally pending.

John Apruzzese, a portfolio and Evercore Wealth Management, partner Manager said reaction in anticipation of the program is typical of the market.

"This is a classic situation where all the movements of the market are carried out in anticipation," Apruzzese said.

The market may be stuck in an operating model that reserve US Federal finds its Wednesday meeting where it is expected to announce details on the program link buying.

One day before the Fed ends its meeting, lead voters to the polls for the mid-term elections.Traders have been betting that Republicans are at least take control of the House of representatives, which could slow Government action.

Analysts say the uncertainty on tax issues and fresh prospective health care and reform of the financial regulation bills were the main reasons employers have hesitated start hiring new workers.The results of the election should provide more clarity on these issues.

With so many uncertain people their jobs, they reduce their spending, which represents the largest piece of the pays.Tandis final GDP report showed an increase of expenditure, its many still below the levels exceeding consumer economy.

Pink Dow Jones index fell 19.19 or 0.2 percent, to 11,094.61 in afternoon trade.

Standard & Poor 500 index fell 1.99, or 0.2 percent, 1,181.79, while the Nasdaq composite index rose 2.38 or 0.1% of 2,509.75.

Bond prices rose slightly PIB.Le reference performance report after 10-year Treasury note fell to 2.62% of 2.66% late Thursday.

Another batch of new compensation came mixte.Microsoft Corp. has increased after reporting higher income end Thursday, while Merck & co. and Chevron Corp. have declined after décevants.Merck results was injured by disappointing revenue figures, while Chevron decreased earnings forecast after that the costs associated with foreign currency.

? 2010 The Associated rights Press.Tous réservés.Ce hardware cannot be published, broadcast, rewritten or redistributed.

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