By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks on Wednesday fell
modestly, retreating from multiyear highs as investors awaited any
hints as to whether the Federal Reserve would change its monetary
policy.
Minutes from the Federal Open Market Committee's January meeting
come later in the session, and the primary focus will be the
central bank's ongoing asset purchases, and "whether any progress
was made on ending" it, said Dan Greenhaus, chief global strategist
at BTIG LLC.
The S&P 500 index (SPX) is up 7% so far this year, lifted by
the Fed's easing policy, better-than-anticipated earnings and after
politicians managed to reach a budget deal.
"We have not seen a bear market for stocks or economic downtrend
start, with the Fed maintaining an 'ultra-low' interest-rate policy
or signaling that it will continue to stimulate the economy through
easy monetary policy," offered Fred Dickson, chief investment
strategist at Davidson Companies.
Retreating some from highs not reached since October 2007, the
S&P 500 (SPX) shed 2.37 points, or 0.2%, to 1,528.57, with
materials the heaviest weight among its sectors and
telecommunications faring best.
Office Depot Inc. (ODP) and OfficeMax Inc. (OMX) will join in a
$1.2 billion all-stock deal, the companies said Wednesday,
confirming an accord mistakenly announced ahead of its
completion.
The Dow Jones Industrial Average (DJI) shed 14.01 points, or
0.1%, to 14,021.6, with Caterpillar Inc. (CAT) falling hardest and
Boeing Co. (BA) leading gains that included 11 of its 30
components, a day after engineers approved the plane maker's
contract offer, deflating a labor dispute.
Caterpillar shares were hit as the manufacturer of construction
and mining equipment reported global sales fell in the first
quarter.
After closing at a 12-year high Tuesday, the Nasdaq Composite
(RIXF) on Wednesday slipped 12.54 points, or 0.4%, to 3,200.97.
Apple Inc. (AAPL) fell 1.6% after supplier Foxconn Technology
Group froze hiring at its biggest factory in Shenzhen.
For every five stocks on the rise nine fell on the New York
Stock Exchange, where 211 million shares traded as of 11:25 a.m.
Eastern. Composite volume neared 1.3 billion.
Figures from the Commerce Department had builders breaking
ground in January on the most homes in more than four years and
permits for construction ahead climbing. Housing starts fell to a
890,000 rate, below expectations.
A separate report from the Labor Department had the
producer-price index rising 0.2% in January after a 0.3% decline
the month before.
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