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Stocks - S&P Gives up Gains Late to End Flat Ahead of Fed

Investing.com - The broader market ended flat Tuesday on late selling as energy stocks sank following a rout in oil prices.

The S&P 500 rose 0.01% to 2,546 after hitting a session high of 2,574. The Nasdaq Composite rose 0.45%.

The Dow Jones Industrial Average rose 0.35%, largely driven by a 4% jump in component Boeing (NYSE:BA) following a dividend and share buyback program boost.

A slump in energy kept a lid on the broader market after oil prices tumbled to a more-than-15-month low on fears of a glut in supply as Russia and the United States continue to ramp up production.

Anadarko Petroleum (NYSE:APC), Hess (NYSE:HES) and Devon Energy (NYSE:DVN) fell more than 4%.

Wall Street also came under pressure on reports Democrats had rejected the President Donald Trump's proposed budget bill, but later recovered from session lows after Senate Minority Leader Chuck Schumer reportedly said Democrats are willing to consider a short-term spending bill to avoid a partial government shutdown at the end of this week.

The topsy-turvy day of trade got off to an upbeat start on expectations the Federal Reserve will raise rates on Wednesday, but rein in its outlook on rate hikes.

Nomura forecasts the dot plots, a chart of future interest rate expectations by Fed members, will imply only two hikes in 2019, below the central bank's previous guidance of three hikes.

Tech bounced back, underpinning the broader market, as a rise in Facebook (NASDAQ:FB) and Google (NASDAQ:GOOGL) led FAANG stocks higher. Tech was also supported by a rise in semis ahead of chipmaker Micron's earnings.

Micron (NASDAQ:MU) fell 2% in after-hours trading after reporting mixed quarterly performance as earnings missed, but revenue beat expectations. The chipmaker also delivered a downbeat outlook on the semiconductor industry, citing "weaker near-term industry supply-growth dynamics entering calendar 2019."

In other corporate earnings news, FedEx (NYSE:FDX) cut its fiscal 2019 earnings guidance as weakness in its international business hurt performance. Its shares fell more than 4% in after-hours trade.

Homebuilders were in favor, meanwhile, on the back of upbeat U.S. housing data showing housing starts and building permits for November topped economists' expectations.

Shares of DR Horton (NYSE:DHI), PulteGroup (NYSE:PHM) and Lennar (NYSE:LEN) rose more than 2%.

Top S&P 500 Gainers and Losers Today:

Darden Restaurants (NYSE:DRI), American Airlines (NASDAQ:AAL) and Nektar Therapeutics (NASDAQ:NKTR) were among the top S&P 500 gainers for the session.

Philip Morris (NYSE:PM), PPL (NYSE:PPL) and Biogen (NASDAQ:BIIB) were among the worst S&P 500 performers of the session.

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