* Apple rises 1.4 percent as new iPhone unveiled
* German court decision on bailout fund lifts stocks
* Facebook's stock gains after Zuckerberg comments
* Indexes up: Dow 0.07 pct, S&P 0.21 pct, Nasdaq 0.32 pct
By Wanfeng Zhou
NEW YORK, Sept 12 (Reuters) - Wall Street ended little
changed on Wednesday, erasing early gains, as investors turned
cautious before a Federal Reserve decision on another round of
monetary stimulus to boost the economy.
Stocks got a lift early after Germany's Constitutional Court
approved the new euro zone rescue fund, which will allow the
European Central Bank to buy sovereign bonds in an effort to
reduce crippling borrowing costs faced by Spain and Italy.
But the gains faded as investors shifted their attention to
the Fed, which concludes a two-day meeting on Thursday. Equities
have rallied on expectations of more Fed action to keep interest
rates low, leading some analysts to warn of disappointment.
Economists put the odds of a third round of bond buying from
the Fed at 65 percent, up from 60 percent in August, according
to a Reuters poll.
"The market is somewhat nervous ahead of tomorrow's Fed
decision, and rightfully so," said Peter Cardillo, chief market
economist at Rockwell Global Capital in New York, who believes
the Fed will not begin another round of stimulus until after
November's presidential election.
"We could be setting ourselves up here for a quick 2 to 4
The Dow Jones industrial average closed up 9.99
points, or 0.07 percent, to 13,333.35. The Standard & Poor's 500
Index ended up 3.00 points, or 0.21 percent, to 1,436.56.
The Nasdaq Composite Index gained 9.79 points, or 0.32
percent, to 3,114.31.
Apple Inc shares were up 1.39 percent to $669.79
after it unveiled its iPhone 5. The introduction of the new
iPhone comes as Apple tries to fend off competition that has
reached a fever pitch.
Facebook Inc jumped 7.7 percent to $20.93 after Chief
Executive Mark Zuckerberg hinted at new growth areas from mobile
to search in his first major public appearance since the No. 1
social network's rocky IPO in May.
The S&P 500 index has advanced more than 9 percent since the
start of June on hopes for global central bank stimulus. The
index has been unable to break through the 1,438-1,440 level,
seen as a significant resistance point.
Uncertainties about the economic outlook, highlighted by
recent profit warnings from FedEx Corp. and Intel Corp.
, could also limit the market's upward momentum.
"It's a little scary for me when you think about what we are
going to be faced with next year," said Catherine Avery,
president of Catherine Avery Investment Management in New
"In addition to the fiscal cliff, we do have a very slow
rate of GDP growth. It's very possible that the S&P earnings
that analysts are predicting for next year are just way too
Ford Motor's stock was up 0.59 percent to $10.21 after
the company's board of directors decided to discuss this week a
succession plan for Chief Executive Alan Mulally, who is
expected to retire by the end of 2013, Bloomberg reported on
Tuesday, citing a person familiar with the matter.
Chesapeake Energy slipped 1.04 percent to $19.89
after the company said it is selling $6.9 billion in gas fields
and pipelines, with most of its assets in the Permian Basin
being sold to Royal Dutch Shell Plc and Chevron Corp
, as well as most of its remaining infrastructure
Mediware Information Systems Inc shares surged 39
percent to $21.86. The clinical software solutions provider
agreed to be acquired by private equity firm Thoma Bravo LLC for
$22 per share in cash.
On the New York Stock Exchange, about two stocks rose for
every one that fell. On the Nasdaq, three stocks rose for every
two that fell.
Volume was light, with about 6.15 billion shares traded on
the New York Stock Exchange, the American Stock Exchange and
Nasdaq, below last year's daily average of 7.84 billion.