U.S. stocks end mixed on Fed uncertainty; Dow down 0.05%
Published Aug 20, 2013 04:22PM ET
Stocks posted solid gains earlier amid hefty demand for retail stocks before profit taking ended the rally.
At the close of U.S. trading, the Dow Jones Industrial Average finished down 0.05%, the S&P 500 index rose 0.38%, while the Nasdaq Composite index rose 0.68%.
Stocks rose earlier after investors snapped up nicely priced retailers, which fell on Monday due to disappointing earnings.
Home Depot shares soared after the company reported second-quarter earnings that beat Wall Street expectations.
The company also hiked its full-year guidance due to an improving housing market, though profit taking ended the rally while stocks overall gave back gains towards the closing bell due to monetary uncertainty.
Hit-or-miss economic indicators over the past several weeks have fueled uncertainty as to when the Fed will announce plans to scale back stimulus tools, with solid dating prompting investors to trade on a September start to tapering and weaker data sparking others to bet on a December start date.
Stimulus tools such as the Fed's monthly USD85 billion in asset purchases push up stock prices by keeping borrowing costs low, and talk of their dismantling can send share prices falling due to uncertainty as to how the market will perform with less monetary support.
Elsewhere, the Federal Reserve Bank of Chicago’s national activity index for July came in at -0.15 from a revised -0.23 in June, though the number came in much worse than market expectations for a -0.10.
Leading Dow Jones Industrial Average performers included Bank of America, up 1.13%, Intel, up 1.12%, and UnitedHealth Group, up 1.03%.
The Dow Jones Industrial Average's worst performers included Home Depot, down 1.21%, Johnson & Johnson, down 0.74%, and Wal-Mart, down 0.48%.
European indices, meanwhile, finished lower.
After the close of European trade, the EURO STOXX 50 fell 1.22%, France's CAC 40 fell 1.35%, while Germany's DAX 30 finished down 0.79%. Meanwhile, in the U.K. the FTSE 100 finished down 0.19%.
On Wednesday, markets will move on the release of the minutes from the Fed's July policy meeting.
Elsewhere, the U.S. will release industry data on existing home sales.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.