By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks fell Wednesday after
retailer Macy's Inc.'s quarterly results disappointed and as
investors debated the timing and pace of reductions in the Federal
Reserve's bond purchases.
Shares of Macy's (M) fell 4.4%, leading losses on the S&P
500 index, after the department-store operator cut its full-year
outlook on disappointing sales.
The less-than-hoped results from Macy's raise "some questions
regarding the health of the American consumer in a sluggish
economy," Fred Dickson, chief investment strategist at Davidson
Companies, wrote in emailed research.
Wall Street will be looking to Wal-Mart Stores Inc. (WMT) for
"further confirmation on the state of the consumer when the largest
U.S. retailer reports quarterly earnings tomorrow morning," Dickson
added.
After a 99-point drop, the Dow Jones Industrial Average (DJI)
was lately off 95.57 points, or 0.6%, to 15,355.44, with 26 of its
30 components in the red.
Cisco Systems Inc. (CSCO) weighed on the blue-chip index, its
shares off 1%, with the technology company slated to release
quarterly results after the close.
The S&P 500 index (SPX) lost 6.72 points, or 0.4%, to
1,687.44, with utilities and consumer discretionary the worst
performing and materials the best among its 10 major industry
groups.
Apple Inc. (AAPL) rose 1.7%, extending a rally that took place
Tuesday after investor Carl Icahn tweeted about holding a large
position in the consumer technology company.
Steinway Musical Instruments Inc. (LVB) climbed 6.3% to $40.67 a
share after it agreed to be taken private for about $512 million,
or $40 a share, by Paulson & Co.
The Nasdaq Composite (RIXF) dropped 14.59 points, or 0.4%, to
3,669.85.
For every five shares rising, two fell on the New York Stock
Exchange, where 157 million shares traded as of 10:50 a.m. Eastern.
Composite volume neared 783 million.
St. Louis Federal Reserve President James Bullard is slated to
speak at 3:15 p.m. Eastern, with investors looking for hints as to
when the Fed will start tapering its $85 billion in monthly asset
buys.
Gold futures (GCZ3) rose $11.40, or 0.8%, to $1,331.90 an ounce
and crude futures (CLU3) fell 67 cents, or 0.7%, to $106.16 a
barrel.
The dollar (DXY) edged lower against the currencies of major
U.S. trading partners and the yield on the 10-year Treasury note
(10_YEAR) used to determine mortgage rates and other consumer loans
fell 3 basis points to 2.702%.
Ahead of Wednesday's open, stock futures offered no perceptible
reaction to a report from the Labor Department that had U.S.
wholesale prices holding steady in July after a 0.8% gain in June.
The core producer price index, which strips out energy and food,
rose 0.1%, less than a 0.2% increase anticipated by analysts.
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