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Investors Hang Back Before Fed Announcement

Jessica Alling
June 19, 2013

Today is the day Mr. Market has been waiting for. Though the Dow Jones Industrial Average (DJINDICES: ^DJI) is trading down this morning, there is sure to be a bigger swing later this afternoon once the market has heard what Fed Chairman Ben Bernanke and the Federal Open Market Committee have to say. While we wait to hear what's next for the latest round of quantitative easing, investors are being cautious, sending the index down only 17 points as of 11:30 a.m. EDT.

Financials down
One of the market segments most susceptible to changes from the Fed is the financial sector. Though they've suffered only modest losses, both Dow bank components -- Bank of America (NYSE: BAC) and JPMorgan (NYSE: JPM) -- are down in trading this morning. Of the big four banks, only Wells Fargo (NYSE: WFC) is registering a gain, while Citigroup (NYSE: C) rounds out the lot with another small loss.

All four banks are in hot water this morning from alleged violations of last year's $25 billion mortgage settlement, according to the settlement's independent monitor. Bank of America and Wells Fargo had already been called out for violations from the New York attorney general's office, but the suit brought