Closing Bell: Stocks End Mixed Despite Fed Assurances on Stimulus

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new york stock exchange trader investing federal reserve minutes oil prices
Richard Drew/AP
U.S. stock markets ended Wednesday trading mixed despite evidence that the Federal Reserve isn't about to pull away its support for the economy.

The Dow Jones industrial average (^DJI) lost 9 points, the S&P 500 (^GPSC) was essentially flat and the Nasdaq (^IXIC) rose nearly 17.

Minutes from the Fed's latest policy meeting showed that many members agreed last month that the job market's improvement would have to be sustained before the Fed reduced its bond purchases. Several felt confident that a pullback in bond purchases could occur soon.

The price of oil rose nearly 2 percent after the government reported another steep decline in the nation's supplies of oil and gasoline. Benchmark crude for August delivery rose $1.05, or 1 percent, to $104.58 a barrel on the New York Mercantile Exchange.

Oil has risen about $12 a barrel, or 13 percent, in the past two weeks to the highest level since early May of last year. The spike initially was caused by turmoil in Egypt. In other commodities trading, the price of gold rose $4.76, or 0.4 percent, to $1,253.49 an ounce.

In regulatory news, the Securities and Exchange Commission voted to lift an 80-year-old ban on publicizing shares of hedge funds and other businesses that issue private stock. It's a move that is expected to transform how startups and investment firms raise cash.

Among stocks making big moves:
  • Shares of Apple (AAPL) fell $1.62, or 0.4 percent, to $420.73, after a federal judge in New York ruled that the company broke antitrust laws and conspired with publishers to raise e-book prices significantly in 2010. Apple disagreed with the court's finding and said it would appeal the ruling.
  • Hewlett-Packard (HPQ) rose 46 cents, or 1.8 percent, to $25.93 after a Citigroup (C) analyst raised his rating on the company. The analyst doubled his price target for the stock, saying the PC maker's turnaround efforts are beginning to take hold.
  • Fastenal (FAST), an industrial and construction supplies distributor, fell $1.33, or 2.8 percent, to $45.77. The company reported revenue for the second quarter that fell short of analyst estimates.
  • Family Dollar Stores (FDO) rose $4.55, or 7.1 percent, to $68.50 after the company's profit beat analyst forecasts.
  • Swiss drugmaker Roche said it stopped studies of its diabetes drug, aleglitazar, because of safety concerns and a lack of evidence that the drug was working. Roche said an independent monitoring committee recommended that it stop the late-stage trial -- and halting all trials of the drug. Shares of Roche, traded on the over-the-counter market, gained 64 cents to $63.15.
What to Watch Thursday:
  • The Labor Department reports weekly jobless claims at 8:30 a.m. Eastern time.
  • Import and export prices for June are also released at 8:30 a.m. from the Labor Department.
  • Freddie Mac, the mortgage company, releases weekly mortgage rates at 10 a.m.
  • Treasury releases the federal budget for June at 2 p.m.

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6 Comments

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thefacts22

I am having mixed feelings about Bernanke,in order to replace him,we will need a pragmatic economist,with a vast experience in real business....I oppose to his injection of money and packing of debt,that some day we will have to pay....the economy should be conducted strictly in a natural way,and should obey offer and demand at any given moment

July 11 2013 at 5:02 AM Report abuse rate up rate down Reply
Alan

Benanke has to go. When we had his predecessor, nobody understood what he was talking about. 'Old Mumbles' Greenspan didn't cause any panics; Benanke does, almost every week. He really should be replaced, now, before things get worse.

July 10 2013 at 11:28 PM Report abuse +1 rate up rate down Reply
toosmart4u

We must continue the stimulus for Prius has drawn all their stimulus cash on their vehicles and the rest of the industry should have the same opportunity. We have to learn to buy American no matter what we purchase. We must keep these jobs at home. We must understand when we ship the job overseas we have to pay the welfare of the workers who lost their jobs.

July 10 2013 at 10:59 PM Report abuse -1 rate up rate down Reply
rlynn2578

Free markets? The stock market has gone up continually for severl years becuase of the QE. While it has ascended, earnings reports each quarter continue to show a decrease in company revenues. Earnings per share seems to be achieved by ridiculously low analysists estimates (they should be judged by a year over year comparison), companies buying its own stock in which the price appreciates because of the QE speculation, and cutting costs (mostly by cutting its workforce). This doesn't seem to be a recipe for an economic cure. It seems more like a set up for another economic collapse. The markets need to be set free instead of being manipulated by the FED. If they were were priced on free market fundamentals, they would not move on the words one individual (the FED Chairman). Most of America will probably have to pay for the current FED policy in the future because the cost will probably be high and the policy really only benefits the top 10% in this country.

July 10 2013 at 6:06 PM Report abuse rate up rate down Reply
lariat101

maybe the headline should read, Stocks end mixed because of the fed assurances

July 10 2013 at 6:03 PM Report abuse +2 rate up rate down Reply
Master

It's nice to know that the only thing holding up the economy are the feds.
Otherwise it would just tank.

July 10 2013 at 5:32 PM Report abuse +1 rate up rate down Reply