Stocks Finish Mildly in Red

Updated from 4:20 p.m. EDT

The major indices in New York settled in negative territory after a mostly positive day as investors digested a harsher forecast for GDP and unemployment from the Federal Reserve.

The Dow Jones Industrial Average lost 52.81 points, or 0.6%, to 8422.04, while the S&P 500 moved 4.66 points, or 0.5%, lower to 903.47. The Nasdaq was off by 6.70 points, or 0.4%, at 1727.84.

The major indices had been in positive territory most of the session, dipping below the flat line only briefly around midday, after crossing zero 74 times the prior day.

Financials grew weaker throughout the afternoon, with the KBW Bank ultimately losing 2.8%. JPMorgan Chase(JPM Quote) gave up 3.5%; and Bank of New York Mellon(WFC Quote) and Wells Fargo(WFC Quote) lost 3.8% and 3.9%, respectively.

On the Dow, General Motors(GM Quote) was still 14.2% higher after reports that callers are serious about the automaker's German unit, and that the U.S. Treasury is likely to invest another $7.5 billion in its finance unit GMAC.

McDonald's(MCD Quote) and Procter & Gamble (PG Quote) rose 4.4% and 2%, respectively, after upgrades.

At 2 p.m. EDT, the Federal Reserve released the minutes from the latest Federal Open Market Committee meeting, saying the pace of decline in "some components of final demand" appeared to have slowed recently . Consumer spending firmed, and housing activity -- although still depressed --"leveled off" in February and March. But businesses cut production and labor markets deteriorated further in recent months, according to the committee.

The FOMC is now projecting real GDP to shrink by 1.3% to 2% in 2009, vs. prior expectations for a decrease between 0.5% and 1.3%. The committee's projections for the unemployment rate during the fourth quarter were between 9.2% to 9.6%, "noticeably higher" than the latest reading available on unemployment at the time, a rate of 8.5%.