By Victor Reklaitis and Barbara Kollmeyer, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks closed higher on
Wednesday, shaking off a dip that came after Federal Reserve
minutes indicated that policy makers talked at their last meeting
about a sooner-than-anticipated hike to interest rates.
The S&P 500 (SPX) rose 4.91 points, or less than 0.3%, to
finish at 1,986.51, according to early FactSet data. The benchmark
turned negative shortly after the minutes came out at 2 p.m.
Eastern, but it bounced back and even briefly traded above its July
24 record close of 1,987.98.
The Dow Jones Industrial Average(DJI) tacked on 59.54 points, or
nearly 0.4%, to finish at 16,979.13, while the Nadaq
Composite(RIXF) was roughly unchanged, edging down by 1.03 points
to 4,526.48.
Fed officials debated at their July meeting whether to move
faster than expected to start raising interest rates in light of an
improving job market and rising inflation, said a Wall Street
Journal report on the minutes. But the officials decided they
needed more evidence before concluding that was the right approach.
(Read more: Fed more divided on U:S: labor market gains
http://www.marketwatch.com/story/fed-more-divided-on-us-labor-market-gains-2014-08-20.)
"The center of gravity is moving gradually to the hawkish side,"
said Jerry Webman chief economist at OppenheimerFunds. The stock
market "likes accommodation," so it gave up a little ground after
the minutes, he told MarketWatch. But there wasn't a more extreme
negative reaction because the minutes don't give a reason to get
pessimistic about corporate earnings, which are the market's main
driver, he added.
The minutes didn't contain "anything shocking," and there wasn't
a big drop by stocks, so the market resumed its two-week uptrend,
said Joe Bell, senior equity analyst for Schaeffer's Investment
Research.
While investors are reading the minutes for clues about the
Fed's strategy, they may quickly move past them to focus on Fed
Chairwoman Janet Yellen's speech at 10 a.m. Eastern Friday in
Jackson Hole, Wyo. Read: Yellen to stress patience on rates at
Jackson Hole
Staples Inc.(SPLS) helped keep a lid on the S&P 500's gains,
becoming the index's worst performer of the day after the retailer
reported a drop in quarterly profit and sales. Apple Inc.(AAPL)
gained less than 0.1% to close at $100.57 for an all-time
split-adjusted closing high. It also hit an intraday split-adjusted
record of $101.09.
What strategists are saying: The S&P 500 could face
resistance in the short term as the benchmark nears its record
close, said Schaeffer's Bell. Prior highs "generally act as some
sort of speed bump," he told MarketWatch.
Movers & shakers: Hertz Global Holdings Inc.(HTZ) shares
slumped 3.9% after the rental-car company said it expects to be
"well below the low end" of guidance. Losses had been steeper, but
then activist investor Carl Icahn disclosed a stake in Hertz. Also
read: It's 'difficult to find any positives' in Hertz warning
Apple scored a record close for the second day in a row. Read: 7
reasons why this product cycle will be different for Apple
Lowe's Cos.(LOW) rose 1.6%, while Target Corp. (TGT) finished up
1.8%. Each retailer had dropped earlier Wednesday after cutting its
guidance. (Read more about today's jumpiest stocks in the Movers
& Shakers column
http://www.marketwatch.com/story/target-lowes-petsmart-report-earnings-wednesday-2014-08-19.)
Other markets: The Stoxx Europe 600 closed lower, halting a
two-day rally. In Asia, stocks finished with moderate gains,
outside a small loss for the Shanghai Composite .
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