Stocks close mixed after Fed news
Stocks fell Wednedsay on news that the Fed is emphasizing a "go-slow" approach on raising rates.
The Dow Jones industrial average fell 17.85 points, to 18,029.85 and the Standard and Poor's 500 stock index fell 0.70 to 2,099.62 The Nasdaq composite rose 7.10 to 4,096.36 All three benchmarks had been moderately in the red for the preceding hours, with the Nasdaq briefly breaking above even-Steven immediately after the 2 p.m. ET release of Fed minutes from the central bank board's meeting last month.
Federal Reserve policymakers expressed growing concerns last month about low inflation and said they were inclined to keep interest rates near zero for longer to avoid derailing the recovery, according to minutes of the Fed's Jan. 27-28 meeting.
The yield on the 10-year Treasury is staying above 2%, and closed at 2.08%, down from 2.14% Tuesday.
Debt-strapped Greece, which has commanded investors' attention the past several days, is preparing to present its creditors in the 19-country eurozone with an official proposal aimed at saving bailout talks from collapse.
In domestic news affecting the economy, the producer price index -- one measure of inflation -- decreased a seasonally adjusted 0.8% in January, pulled down by a huge, 24% drop in gasoline prices.
For January, the index for final-demand goods dropped 2.1%, the seventh consecutive decrease, the Labor Department reports.
Industrial production increased 0.2% in January after decreasing 0.3% in December, the Federal Reserve says.
The rates of change in output for September through December all are slightly lower than previously published; even so, production is estimated to have advanced at an annual rate of 4.3%the fourth quarter of last year
Housing starts slipped 2% to a seasonally adjusted annual rate of 1.07 million last month, the Commerce Department says. Starts on single-family houses plummeted 6.7% from the previous month.
Asian stocks advanced Wednesday on investor optimism ahead of a European Central Bank meeting on bailout conditions for Greece, though trading was quiet as many markets were shut for the Lunar New Year.
Japan's Nikkei 225 index rose 1% to close at 18,199.17 and Hong Kong's Hang Seng index gained 0.2%.
European shares ended mostly up amid the closer-to-home news of Greece's financial saga.
Greek shares climbed 1.1% on the news, after days of losses, and the eurozone's Euro Stoxx 50 index rose 0.8%.
Government spokesman Gavriil Sakellaridis said the Greek plan would involve extending the 240 billion euro ($272 billion) international loan agreement that has kept the country afloat since it nearly went bankrupt in 2010 — but, apparently, without the austerity strings attached.
It is unclear whether the plan would be acceptable for Greece's creditors.
Greece is hoping to reach a last minute deal for a loan extension to avoid a potentially disastrous exit from the shared European currency. Its bailout program ends Feb. 28.
Contributing: Jane Onyanga-Omara.