US stocks edge higher after Federal Reserve further trims its bond purchases

The Associated Press

Specialist Peter Giacchi calls out prices during the IPO of Foresight Energy on the floor of the New York Stock Exchange, Wednesday, June 18, 2014. U.S. stocks are little changed in early trading as investors wait for the latest policy action from the Federal Reserve. (AP Photo/Richard Drew)

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The Associated Press

Stocks are edging higher in afternoon trading after the Federal Reserve made its latest reduction to its bond purchasing program.

Noting that the U.S. job market was making further improvements, the Fed said it would cut another $10 billion from its monthly bond purchases. The decrease was in line with what investors were expecting.

The Dow Jones industrial average was up 12 points, or 0.1 percent, to 16,825 shortly after the Fed released its policy statement at 2:00 p.m. Eastern time. It was down about 20 points shortly before.

The Standard & Poor's 500 was up five points, or 0.3 percent, to 1,947. The index was little changed just before the Fed news was released.

Bond prices rose slightly. The yield on the 10-year Treasury note fell to 2.61 percent.

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