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Stocks Turn Mixed; Coke Fizzes, Apple Pops Ahead Of Fed

Coca-Cola said weakness in China and Latin America hurt sales last quarter.

Stocks were mixed Wednesday afternoon as investors awaited a Federal Reserve decision on interest rates.

The Nasdaq rose 0.3%, while the S&P 500 fell more than 0.3% and the Dow Jones industrial average dipped 0.1%. Volume was running higher across the board in the stock market today. Oil futures fell 2.5% to $41.84 a barrel following surprise builds in U.S. crude and gasoline supplies.

The Fed was set to release its policy statement at 2 p.m. ET following the central bank's two-day meeting. Policymakers are expected to hold interest rates steady at between 0.25% and 0.50% as concerns abroad offset generally positive U.S. economic data.

Coca-Cola (KO) led the Dow lower, sinking nearly 4% after reporting weak sales and cutting revenue targets.

Coca-Cola said Q2 profit fell 5% to 60 cents a share, which was better than expected. Sales also fell 5%, to a lower-than-expected $11.5 billion, on weak demand in China and parts of Latin America.

The world's biggest beverage maker also lowered its full-year revenue forecast. Coca-Cola pierced its long-term 200-day moving average but continues to work on a long.

Meanwhile, Apple (AAPL) boosted the Nasdaq by jumping nearly 7% after a better-than-expected quarterly earnings report released after the close Tuesday. The stock is testing resistance at its 40-week moving average as it tries to break a yearlong downtrend.

Buffalo Wild Wings (BWLD) soared almost 10% after the restaurant chain posted a better-than-expected 13% gain in Q2 profit to $1.27 a share. Revenue rose 15% to $490.2 million.

The strong results came a day after Stifel Nicolaus downgraded a number of restaurant stocks amid concern that a recession was on the horizon.


IBD'S TAKE: To see how Buffalo Wild Wings stacks up against its rivals in the restaurant industry, check out IBD's Stock Checkup feature.


In economic news Wednesday, orders for long-lasting durable goods dropped 4% in June, the biggest drop in 22 months and much worse than Wall Street had expected.

Also Wednesday, pending home sales rose just 0.2% in June after dropping 3.7% in May, according to data from the National Association of Realtors.