A late-day slide left the major averages narrowly mixed at today's closing bell, well off gains of 1% or better seen earlier in the session. Financials and energy shares led the retreat. Stocks gave up robust gains that followed upbeat economic data and a signal from the Federal Reserve that interest rates would remain low for awhile.
Stock averages added to earlier gains after the Federal Reserve indicated it's in no hurry to lift interest rates from record lows even amid signs the recession is over. As expected, the Fed kept its target for its federal funds rate set at a range of zero to 0.25%.
The Fed said economic activity has "continued to pick up" and that the housing market also has grown stronger, a key ingredient to a sustained recovery, the AP reported.
Still, Fed Chairman Ben Bernanke and his colleagues warned that rising joblessness and hard-to-get-credit for many people and companies could restrain the rebound in the months ahead, the AP said.
Investors had been relatively risk-averse over the past several sessions. The major averages hit new 2009 highs in October only to be followed up with inconsistent economic data.
Economic data issued Wednesday were largely positive for stock bulls.
Private-sector firms in the U.S. cut 203,000 jobs in October, according to the ADP employment report released Wednesday. It was the fewest jobs lost since July 2008. In September, a revised 227,000 jobs were lost compared with the 254,000 originally reported. Investors hope this bodes well for Friday's key monthly jobs report from the Labor Department.
The Institute for Supply Management said service industry activity grew for a second straight month in October. Although the index slipped to 50.6 in October from 50.9 in September and was below economists' mean forecast for 51.5, investors focused on new orders. The ISM said new orders, which are an indicator of future business activity, grew faster. Business activity also picked up, it said.
Earnings continue to trickle in. Cisco Systems (
CSCO) is counted among a host of post-bell earnings releases.
Analysts polled by Thomson Reuters are expecting the company to report a profit of $0.31 per share on revenue of $8.74 billion.
NYSE up 17.7 (0.3%) to 6,830.43.
-DJIA up 30 (0.3%) to 9,802.
-S&P 500 up 1 (0.1%) to 1,047.
-Nasdaq down 1.8 (0.1%) to 2,056.
GLOBAL SENTIMENT
Hang Seng up 1.76%
Nikkei up 0.42%
FTSE up 1.45%
UPSIDE MOVERS
(+) ABK swings to profit.
(+) ACAS reaches deal with lenders.
(+) IRE jumps despite lower profit, says it may need new aid.
(+) DRIV beats with Q3, offers mixed guidance.
(+) GNVC gets FDA orphan status for TNFerade.
DOWNSIDE MOVERS
(-) GRMN turns lower despite beating with Q3.
(-) CMCSA gives up earlier gain; beats with earnings, meets with revenue.
(-) HIG gives up earlier gain despite Q3 beat, raised guidance.
(-) STEC continues evening slide after company beats with Q3, but guides for Q4 below Street.
(-) VG extends losses on revenue decline.
(-) TRLG misses with Q3, guides below Street.
