By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks ended Wednesday's choppy
trading session generally higher, though selling of shares in
Internet companies and high-growth companies resulted in a loss on
the Nasdaq Composite.
Markets recovered early morning losses after Federal Reserve
Chairwoman Janet Yellen reiterated that the central bank
anticipates keeping interest rates very low, even after employment
and inflation return to healthy levels. Also read: Yellen stays
upbeat but is watching housing.
The Nasdaq Composite(RIXF) recovered most of the steep losses
and finished the day 13.09 points, or 0.3%, lower at 4,067.67.
The S&P 500 (SPX) ended the day at up 10.49 points, or 0.6%,
at 1,878.21. The Dow Jones Industrial Average (DJI) gained 117.52,
or 0.7%, to 16,518.54 by the end of the session.
Read the recap of MarketWatch's live blog of today's
stock-market action.
Commenting on volatile trading, Paul Mangus, head of equity
research and strategy at Wells Fargo Private Bank, said now that
the earnings season is almost over, markets are sensitive to macro
news.
"We have seen a change in sentiment among investors, a shift
from momentum stocks whose earnings disappointed and no longer
justify lofty valuations," he added.
Investors generally liked Federal Reserve Chairwoman Janet
Yellen's testimony before the Joint Economic Committee, when she
reiterated that the central bank anticipates keeping overnight
interest rates very low, even after employment and inflation return
to healthy levels. Also read: Yellen stays upbeat but is watching
housing.
A report ahead of the opening bell showed that slower economic
growth caused in part by brutal winter weather led to a sharp
decline in U.S. productivity in the first quarter.
The productivity of American businesses fell at a 1.7% annual
rate from January through March, the Labor Department said
Wednesday. It was more than expected by economists polled by
MarketWatch.
Yahoo shares lower, Electronic Arts rallies
Tesla Motors Inc.(TSLA) shares dropped more than 5% in
afterhours trading after the car maker reported a surprise loss in
the first quarter. Tesla shares closed 2.9% lower ahead of the
results. Also read: Tesla live blog: first-quarter results.
Coffee company Keurig Green Mountain Inc. (GMCR), shares rallied
5% after quarterly profits topped expectations. Shares closed down
3.2% ahead of the results.
SolarCity (SCTY) shares rallied 8% in aftermarket trade, after
reporting a smaller loss than expected. Shares closed 9% lower
ahead of results.
Shares of Yahoo Inc. (YHOO) fell 6.6% after Chinese Internet
heavyweight Alibaba Group Holding Ltd. filed plans to list shares
in the U.S.
Yahoo has a 24% stake in Alibaba, and its initial public
offering is poised to be one of the biggest listings on record.
Read: Yahoo's Alibaba moment has finally arrived.
Electronic Arts Inc. shares (EA) rallied 21%. Late Tuesday, the
videogame maker reported fourth-quarter results that outstripped
Wall Street's projections.
In contrast, King Digital Entertainment PLC (KING), maker of
Candy Crush Sage hit game, slumped 13% after profit fell 20%.
Shares in Whole Foods Market Inc. (WFM) dived 19%, still
suffering after the upscale grocer late Tuesday cut its full-year
profit and sales forecasts.
AOL Inc. (AOL) shares plummeted 21% after the Internet company's
first-quarter profit dropped more than 60%, hurt by restructuring
and asset impairment charges, even as revenue topped
expectations.
Gold prices fall, oil rises
European markets ended a volatile day on a mixed note, while
Asian stock markets closed sharply lower. Russia's MICEX index
rallied 3.4%, after president Putin said he was ready to talk over
the crisis in Ukraine.
The U.S. dollar (DXY) pared its gain against the Japanese yen
Wednesday as Fed Chairwoman Janet Yellen emphasized that easy
monetary policy remains necessary because of slack in the
economy.
Among commodities, June gold (GCM4) prices fell sharply, while
crude for June delivery (CLM4) rose to regain the $100 a barrel
level.
More must-reads from MarketWatch:
Michael O'Rourke: U.S. stocks may be the walking dead
Jim O'Neill: Short the euro, watch Apple, sell in May
Investors get bearish, suggesting stocks will rise
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