NEW YORK — Wall Street finished little changed Monday as investors turned cautious ahead of the Federal Reserve’s two-day policy meeting, which starts today.
Stocks advanced for most of the session, then pulled back modestly in the final minutes of trading.
Investors appeared to be waiting for the Fed to make the next move. Policymakers are widely expected to cut interest rates by a quarter point on Wednesday, then leave them steady for the balance of the year to help ward off inflation.
The session’s modest moves came despite one of the most active days for acquisitions in almost three months.
The biggest deal was the offer by Warren Buffett and candy maker Mars Inc. to buy Wm. Wrigley Jr. Co. for about $23 billion in cash. Meanwhile, billionaire Kirk Kerkorian plans to make an offer that would expand his stake in Ford Motor Co. to 5.6 percent, saying he sees signs the automaker’s turnaround plan is working.
This helped to offset disappointment in the market that struggling Continental Airlines said it would not pursue a combination with another carrier right away. It was a surprising move after weeks of speculation it would join with United Airlines to create the world’s biggest carrier.
But investors appeared focused on the Fed.
“Investors are holding their breath for the Fed, and not even these high-profile deals are shaking people off of their hands,” said Jack A. Ablin, chief investment officer at Harris Private Bank. “The direction of Fed policy hangs in the balance, and there are people like me that hope the central bank quits sooner rather then later.”
The Dow Jones industrial average fell 20.11, or 0.16 percent, to 12,871.75.
Broader indexes were mixed. The Standard & Poor’s 500 index slipped 1.47, or 0.11 percent, to 1,396.37, and the Nasdaq composite index rose 1.47, or 0.06 percent, to 2,424.40.
Some observers saw the dealmaking as an encouraging sign that companies are still willing to make mergers and acquisitions happen.
“What is happening is that people are thinking the Fed is keeping the economy going, and this is a good opportunity to do some inexpensive shopping,” said Scott Fullman, director of derivatives investment strategy for WJB Capital Group in New York.
