By Victor Reklaitis and Sara Sjolin, MarketWatch
Apple debuts as Dow component
NEW YORK (MarketWatch)--Most U.S. stocks pulled back Thursday,
taking a breather a day after a Federal Reserve-inspired rally that
sent the S&P 500 to its highest close in two weeks.
The S&P 500 (SPX) fell 10 points, or 0.5%, to 2,089, while
the Dow Jones Industrial Average (DJI) dropped 112 points, or 0.6%,
to 17,964. The blue-chip gauge has been down by as much as 142
points.
The Nasdaq Composite (RIXF) bucked the negative trend, rising 12
points, or 0.2%, to 4,994. The tech-heavy index briefly traded
above the 5,000 level in late-afternoon action.
The S&P and Dow's modest declines followed a volatile
session on Wednesday, when stocks erased early losses to finish
markedly higher, with the Dow climbing 227 points. The Fed, as
expected, dropped its pledge to remain "patient"
(http://www.marketwatch.com/story/fed-takes-step-to-rate-hike-but-scales-back-intended-pace-2015-03-18)
about raising rates, but signaled a slower increase in interest
rates than it foresaw just a few months ago.
"So in the end, while the Fed remains data dependent, the data
now seems to be saying 'it depends,'" said Sam Stovall, equity
strategist at S&P Capital IQ, in a note. But Stovall also said
his outfit's expectations for the year haven't changed much, as he
added: "We maintain our year-end S&P 500 target of 2250 as well
as our expectation for elevated market volatility."
Thursday's economic news: Before the market's open, a weekly
report on jobless claims was a bit weaker than expected, and stock
futures maintained their losses after its release. First-time
jobless claims for the week ended March 14 came in at 291,000
(http://www.marketwatch.com/story/us-jobless-claims-barely-changed-at-291000-2015-03-19),
while economists polled by MarketWatch had expected 290,000.
The stock market also had a muted reaction to a
weaker-than-anticipated figure for the Philadelphia Fed's
manufacturing index
(http://www.marketwatch.com/story/philly-fed-index-inches-lower-to-52-in-march-2015-03-19).
Individual movers:Apple Inc.(AAPL) is in the spotlight as it
made its debut as a Dow Jones Industrial Average component. Shares
were down 0.4% after rising at the open. See: How Apple's stock
will influence the Dow
(http://www.marketwatch.com/story/how-apples-stock-will-influence-the-dow-2015-03-19)
Transocean Ltd. (RIG) was the S&P 500's biggest decliner
after the offshore driller said it expects to book an after-tax
charge of between $300 million and $325 million as it disposes of
four rigs.
Nucor Corp.(NUE) was another big S&P decliner after the
steel giant issued a warning about its first-quarter results.
Lennar Corp.(LEN) gained after the home builder reported
earnings and revenue that beat expectations
(http://www.marketwatch.com/story/lennar-profit-revenue-beat-views-sees-improving-housing-market-2015-03-19).
Read more about Thursday's jumpiest stocks in the Movers &
Shakers column
(http://www.marketwatch.com/story/apple-to-debut-as-dow-component-nike-earnings-in-focus-2015-03-19)
Other markets: The dollar recouped much of its post-Fed losses
(http://www.marketwatch.com/storyno-meta-for-guid), with the ICE
dollar index (DXY) showing a sizable gain. The greenback had
dropped against its rivals after Wednesday's Fed announcement,
sliding to its lowest level
(http://www.marketwatch.com/story/dollar-trapped-in-a-tight-range-ahead-of-fomc-outcome-2015-03-18)
against the euro in eight days.
The euro (EURUSD) moved sharply lower Thursday, as attention
reverted back to negotiations between Greece and its creditors,
with a meeting on the sidelines of this week's eurozone summit.
Read: Merkel plays down hopes for Greek deal at European summit
(http://www.marketwatch.com/story/merkel-downplays-hopes-for-greek-deal-at-european-summit-2015-03-19).
European stock markets ended mostly higher
(http://www.marketwatch.com/story/resource-stocks-push-european-markets-toward-record-high-2015-03-19),
keying off the Fed optimism. The Fed statement came out after
markets in Europe closed, making Thursday's session the first
chance for that region's investors to react to the news. The U.K.'s
FTSE 100 (http://www.marketwatch.com/storyno-meta-for-guid)
finished at a record high.
Asian markets closed mixed, with stocks in Shanghai extending a
seven-day winning streak
(http://www.marketwatch.com/story/chinese-stocks-advance-further-after-us-rally-2015-03-19).
Gold settled higher
(http://www.marketwatch.com/story/gold-rallies-as-fed-signals-slow-pace-of-rate-hikes-2015-03-19),
while crude oil prices settled lower
(http://www.marketwatch.com/storyno-meta-for-guid).
Subscribe to WSJ: http://online.wsj.com?mod=djnwires