Stocks end mixed after short-lived Fed bump
Stocks ended mixed after a short-lived bump Wednesday from release of the minutes from the last Federal Reserve meeting that showed a June rate hike was unlikely.
Fed policymakers cited the economy's recent sluggish performance and raised concerns that the negative effects of a strong dollar on U.S. exports and low oil prices on energy investment "might be larger and longer lasting than previously anticipated."
Investors initially sent stocks higher on the news after trading cautiously in earlier trading. The major indexes climbed a bit above the break-even mark, only to peter out and turn mixed as the closing bell approached.
The Dow Jones industrial average ended down 0.2% to 18,285.40, below its record close of 18,312.39 set the day before.
The Standard & Poor's 500 index lost 0.1% while the Nasdaq composite index ended fractionally higher.
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MARKETS:Delayed Fed rate hike may not be all that good for stocks
Most Wall Street pros didn't expect the Fed minutes to deliver any major surprises and investors had been pricing in a hike no earlier than September, or perhaps even later in the year.
"The soft numbers for the U.S. economy so far this year have lessened the risk of the Fed tightening any time soon," said Nick Sargen, senior investment advisor at Fort Washington Investment Advisors.
While the broad market snapped a three-day run of new highs yesterday, the reasons for the recent run back to new highs remain intact, adds Bob Doll, chief equity strategist at Nuveen Asset Management.
"Stocks have done incredibly well despite earnings estimates getting cut since January 1, with the modest forward progress is likely due to the likelihood of improved earnings in the second half," Doll tells USA TODAY. What's more, while valuations are now slightly higher than the historical long-term averages, "stocks are still not expensive relative to other financial assets, such as bonds and cash."
Two retailers were in focus as Target reported earnings that beat Wall Street estimates but Lowe's results fell short of expectations.
Overseas, Asian markets were mixed. Japan's Nikkei 225 index rose 0.9% and Hong Kong's Hang Seng index dropped 0.4%. The Shanghai Composite gained 0.7%.
European shares were also mixed: Britain's FTSE 100 rose 0.2% and Germany's DAX index dropped 0.1%.
U.S. stocks ended mixed Tuesday but the Dow Jones industrial average managed to notch a record closing high for the second straight session. The S&P 500 dipped slightly as it pulled back from its record high.