US STOCKS-Dow pares loss, S&P ticks up as Fed seen easing soon

* Fed discussed further money printing “before long”

* Dow off 0.1 pct, but S&P up 0.1 pct, Nasdaq up 0.3 pct
* For up-to-the-minute market news see [STXNEWS/US]
(Updates with Fed minutes, changes byline)

By Rodrigo Campos

NEW YORK, Oct 12 (BestGrowthStock) – The Dow trimmed its loss and
the S&P 500 inched higher on Tuesday as details from the latest
Federal Reserve meeting showed the U.S. central bank is ready
to flood the markets with cheap cash in support of a waning
economic recovery.

A move from the Fed is all but priced into the stock
market. In their September meeting, Fed policy-makers hinted
that the timing of any action could be soon as the minutes of
the meeting said they felt further monetary easing could be
appropriate “before long.”

Increased hopes that the Fed would step in to bolster the
economy helped support stocks in recent weeks. The S&P 500
index is up 11.3 percent since the start of September, and last
month’s performance was one of the best months for stocks in a
decade.

“It looks like the Fed is moving closer to another round of
quantitative easing,” said Michael Sheldon, chief market
strategist at RDM Financial in Westport, Connecticut.

“The Fed has almost boxed themselves into a corner in the
sense that the market expects some type of activity. The only
question is, ‘how much and when?'”

The dollar index (Read more about the global trade. ) (.DXY: ), a gauge of the greenback against a
basket of currencies, erased its earlier gain and was down 0.1
percent in afternoon trading. Investors have of late used
fluctuations in the U.S. currency as a trigger to move into or
out of stocks. The 30-day correlation between the index and the
S&P 500 (.SPX: ) ticked down to -0.90.

The Dow Jones industrial average (.DJI: ) dipped 9.20 points,
or 0.08 percent, to 11,001.14. The Standard & Poor’s 500 (.SPX: )
edged up just 0.63 or a point, or 0.05 percent, to 1,165.95.
The Nasdaq Composite (.IXIC: ) gained 6.43 points, or 0.27
percent, to 2,408.76.

China’s bid to cool down its economy offset the Fed’s
resolve, as it sparked concerns it could crimp global growth.
An official Chinese newspaper reported the government raised
bank reserve requirements by 50 basis points, the fourth hike
this year, due to excessive lending.

The report confirmed a Reuters story on Monday
[ID:nTOE69A05I] and [ID:nTOE69A03Y].

Also on investors’ minds are results from Intel Corp
(INTC.O: ), expected after the close. Its shares advanced 0.2
percent to $19.60. Apple (AAPL.O: ), up 0.5 percent at $296.94,
led the Nasdaq’s advance after Barclays raised its price target
on the company’s stock.
(Reporting by Rodrigo Campos; Additional reporting by Leah
Schnurr; Editing by Jan Paschal)

US STOCKS-Dow pares loss, S&P ticks up as Fed seen easing soon