Stocks Deepen Losses on Fed's Remarks About Stimulus
NEW YORK (TheStreet) -- Major U.S. equity indices posted deeper losses Wednesday after the Federal Reserve's minutes from its January meeting suggested many officials are open to changing its stimulus program. Fresh data for housing starts and the producer price index already had sent stocks down.
The Dow Jones Industrial Average wrapped up the trading day down 108 points, or 0.8%, to 13,928.
Bank of America CEO Brian Moynihan's 2012 pay totaled some $12 million, including $11.1 million in restricted shares. The bank chief earned $7 million in 2011. Shares slid 3.3%.Boeing (BA), Wal-Mart (WMT), Merck (MRK) and Verizon (VZ) were among the biggest gainers. Boeing engineers accepted a new four-year contract, but technical workers voted to authorize a future strike as they rejected the contract offer. The news comes amid Boeing's troubles with the battery on its Dreamliner jets. The company has discovered a fix to the problem, Reuters reported. Shares added 0.2% on Wednesday. Trade volume was heavy on the New York Stock Exchange at 4.19 billion shares, while it totaled 1.99 billion shares on the Nasdaq. Decliners were ahead of advancing issues by a 3.3-to-1 ratio on the NYSE and by a 3.6-to-1 ratio on the tech-heavy index. The S&P 500 declined 19 points, or 1.2%, to 1,512. Nasdaq was off 49 points, or 1.5%, to 3,164. "What you're getting today is just a digestion of mixed data, the fact that [the S&P 500] moved 7% so far year-to-date you're getting a little bit of exhaustion as the market awaits more data points," said Drew Nordlicht, managing director at HighTower San Diego. The Commerce Department said Wednesday that U.S. housing starts printed at 890,000 for January, an 8.5% decrease from an upwardly revised 973,000 reported in December. A consensus among analysts was looking for an increase of 914,000. The Bureau of Labor Statistics reported the January producer price index increased 0.2% month over month. It was better than the December decrease of 0.2%. Consensus among analysts had forecast PPI to rise by 0.3% month over month. Minus food and energy, the index increased 0.2% in January. The Federal Open Market Committee -- the policy-making wing of the Fed -- met in January, and the minutes released Wednesday said many members were more open to backing away from the current $85 billion in monthly open-ended purchases of longer-term Treasuries and mortgage-backed securities.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV