The major market indexes gave up small gains after the minutes of the Fed's September meeting raised concerns that policymakers could raise interest rates above what they consider "neutral" for the economy.
XThe Dow Jones industrial average shed 0.4% while the S&P 500 and Nasdaq composite gave up less than 0.1% each. Small caps as tracked by the Russell 2000 fell 0.4%. Volume was slightly lower on the NYSE and Nasdaq, according to preliminary figures.
The Dow reversed lower as Home Depot (HD) and IBM (IBM) weighed heavily on the blue-chip index. Home Depot tumbled 4%, near a five-month low, as Credit Suisse downgraded the stock to neutral from outperform and cut its price target to 204 from 222. Disappointing housing data didn't help.
IBM gapped down 8% to its lowest level since March 2016. Big Blue's Q3 earnings beat views, but its revenue disappointed the Street after hours Tuesday. Shares are now 21% off their 52-week high.
Johnson & Johnson (JNJ) and Goldman Sachs (GS) outperformed on the Dow as each advanced more than 2%.
Airlines, big banks and medical stocks were among the top sector gainers in the stock market today.
Auto Parts Stocks Crash
Auto parts retailers, automakers and building-related plays led the downside. AutoZone (AZO) skidded 8%, crashing through its 50-day line before stopping just above its 200-day line. Turnover was about three times faster than usual.
On Tuesday, AutoZone rival Advance Auto Parts (AAP) and Walmart (WMT) announced plans to team up and launch an online specialty auto parts store. AutoZone shares fell 2% Tuesday. Advance Auto, which gained nearly 1% Tuesday on the news, fell 5% Wednesday to breach its 50-day line. O'Reilly Automotive (ORLY) shed 3.6% Wednesday to close just below its 50-day line.
The auto parts retail group was No. 1 among the 197 industry groups tracked by IBD, through Tuesday's close. It sank 6% Wednesday.
Homebuilder stocks fell on weaker-than-expected housing starts and permits for September. Housing starts fell 5.3%. Meritage Homes (MTH) slid 4%, PulteGroup (PHM), KB Home (KBH) and Toll Brothers (TOL) slid about 3% each. The homebuilder group has been lagging recently, at No. 196 of IBD's 197 industry groups.
Over on the IBD 50, Netflix (NFLX) outperformed with a 5% jump, which put the stock back above its 50-day line. After the close Tuesday, the movie-streaming service delivered an upside earnings surprise and new subscribers above forecasts. But its Q4 guidance came in slightly below analyst estimates. Netflix on Wednesday pared an early 10% gain by half.
Biggest IBD 50 losers included Momo (MOMO), down 8%, Advanced Micro Devices (AMD) and Viper Energy Partners (VNOM). AMD and Viper lost 3% and 4%.
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