By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks slipped on Wednesday from
multiyear highs as investors considered housing data and awaited
any hints as to whether the Federal Reserve would change its
monetary policy.
Minutes from the Federal Open Market Committee's January meeting
come later in the session, and the primary focus will be the
central bank's ongoing asset purchases, and "whether any progress
was made on ending" it, said Dan Greenhaus, chief global strategist
at BTIG LLC.
The S&P 500 index (SPX) is up 7% so far this year, lifted by
the Fed's easing policy, better-than-anticipated earnings and after
politicians managed to reach a budget deal.
"We have not seen a bear market for stocks or economic downtrend
start, with the Fed maintaining an 'ultra-low' interest-rate policy
or signaling that it will continue to stimulate the economy through
easy monetary policy," offered Fred Dickson, chief investment
strategist at Davidson Companies.
Retreating some from highs not reached since October 2007, the
S&P 500 (SPX) shed 7.76 points, or 0.5%, to 1,523.23, with
materials the heaviest weight among its sectors and utilities
faring best.
Office Depot Inc. (ODP) and OfficeMax Inc. (OMX)(OMX) will join
in a $1.2 billion all-stock deal, the companies said Wednesday,
confirming an accord mistakenly announced ahead of its
completion.
The Dow Jones Industrial Average (DJI) shed 21.74 points, or
0.2%, to 14,013.9, with Boeing Co. (BA) leading gains that included
nine of its 30 components, a day after engineers approved the plane
maker's contract offer, deflating a labor dispute.
Caterpillar Inc. (CAT) shares were among those hit as the
manufacturer of construction and mining equipment reported global
sales fell in the first quarter.
Toll Brothers Inc. (TOL) shed 5.8% after the luxury-home builder
reported earnings beneath expectations.
After closing at a 12-year high Tuesday, the Nasdaq Composite
(RIXF) on Wednesday slipped 21.47 points, or 0.7%, to 3,192.12.
Apple Inc. (AAPL) fell 1.8% after supplier Foxconn Technology
Group froze hiring at its biggest factory in Shenzhen.
For every stock on the rise nearly two fell on the New York
Stock Exchange, where 340 million shares traded as of 1:40 p.m.
Eastern. Composite volume surpassed 2.2 billion.
Figures from the Commerce Department had builders breaking
ground in January on the most homes in more than four years and
permits for construction ahead climbing. Housing starts fell to a
890,000 rate, below expectations.
The rise in permits suggests "the January decline in starts will
be temporary, and as the year progresses, housing starts will
continue to push higher," said Greenhaus at BTIG.
A separate report from the Labor Department had the
producer-price index rising 0.2% in January after a 0.3% decline
the month before.
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