Late Selling Hits Stocks

Fed Chairman Ben Bernanke spoke before the Cato Institute about Federal Open Market Committee communications. Bernanke said the FOMC will release expanded forecasts in a more timely fashion as a measure to make the central bank more transparent.

Starting Nov. 20, the Fed will release expectations for prices, gross domestic product and unemployment figures in the coming three years. The central bank will also release economic forecasts quarterly, up from twice a year.

"The changes will provide a more timely insight into the committee's outlook, will help households and businesses better understand and anticipate how our policy decisions respond to incoming information and will enhance our accountability for the decisions we make," said Bernanke. "The projections also function as a plan for policy -- albeit as a rough and highly provisional one."

Also on the economic front, the Commerce Department said that retail sales rose 0.2% last month, as expected. Excluding autos, retail sales were up 0.2%, also in line with estimates.

Elsewhere, HSBC Holdings (HBC Quote) said it would take a $3.4 billion charge during the third quarter because of the subprime mortgage and credit mess. However, the bank believes the writedown will be offset by revenue growth in other areas. The stock was up 7 cents, or 0.1%, to $88.85.

Delta Air Lines (DAL Quote) was one of the day's winners, rising 4.1% to $19.52 on speculation it might merge with UAL Corp.'s (UAL Quote) United Airlines. UAL gained 1.5% to $44.17.

On the earnings docket, Macy's (M Quote) said it swung to a third-quarter profit, topping Wall Street's expectations. The department-store chain also provided guidance for fourth-quarter earnings and revenue that were in line with estimates. Still, shares of Macy's lost $2.18, or 7.1%, to $28.47.