Stocks remained mostly lower in afternoon trading Wednesday as investors reacted to a better-than-expected private jobs report as well as minutes from the Federal Reserve's December policy meeting.
In late trading on Wall Street, the Dow Jones industrial average was down 88.3 points at 16,435.4. The Standard & Poor's 500 index was off 3.9 points at 1,834.2. The Nasdaq composite, which has climbed most of the day, was up 3.6 points at 4,156.8.
FED MINUTES. The Federal Reserve released minutes from its mid-December meeting, when central bank officials surprised some investors by voting to start tapering the bank's huge bond-buying program. A majority of Fed policymakers believed the recent jobs data and other signs of an improving economy were enough to merit a reduction in stimulus. The vote led to the decision to cut the Fed's bond-buying program from $85 billion a month to $75 billion beginning in January.
JOBS, JOBS, JOBS. The big theme of the week is job news. A private survey showed U.S. businesses added the most jobs in a year in December, powered by a big gain in construction work. Payroll processor ADP said Wednesday that companies added 238,000 jobs in December, better than the 200,000 economists predicted. The ADP data sets the stage for Friday's government jobs report. Investors expect the U.S. economy created 190,000 jobs last month and the unemployment rate remained steady at 7 percent.
EARNINGS SEASON ARRIVES. Big publicly traded companies will start reporting their quarterly financial results Thursday. Dow member Chevron reports after the closing bell Thursday as well as former Dow member Alcoa. Investors are going to be looking to see if the recent improvement in the U.S. economy has translated into higher earnings for corporate America.
BIG PHARMACEUTICAL DEAL. Forest Labs closed up $9.24, or 16 percent, to $67.99 after the company said it would buy Aptalis, which specializes in treatments for gastrointestinal problems and cystic fibrosis, for $2.9 billion in cash.
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Posted by Unknown on Wednesday, January 8, 2014 - Rating: 4.5
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