NEW YORK (TheStreet) -- U.S. stocks fell Wednesday, continuing a modest pullback, amid speculation the Federal Reserve may finally begin winding down its contentious yet arguably successful $85 billion a month bond-purchasing program as early as next month.
Investors exhibited caution on Wednesday following declarations a day earlier from Chicago Fed President Charles Evans, one of the most aggressive supporters of the Fed's massive stimulus program, and Atlanta Fed Bank President Dennis Lockhart, that the central bank could begin tapering its bond-buying program as early as September, though this wasn't set it stone. Both were quick to add that job growth numbers would be watched closely to determine whether a pullback would be in order.
Investor sentiment was further eroded when IBM (IBM) said it plans to furlough the majority of its U.S. employees in its hardware unit, according to several reports. Employees will be required to take a week off at one-third pay beginning either Aug. 24 or Aug. 31. That sounds more like Greece than the world's foremost provider of computer services.IBM was fell 0.8% to $188.56 a day after the shares were downgraded by Credit Suisse. Walt Disney (DIS) uncharacteristically tumbled following an earnings report after the world's largest entertainment company said it expects to incur a fourth-quarter loss of $160 million to $190 million on The Lone Ranger. Disney lost 1.7% to $65.91. Ralph Lauren (RL) tumbled 8.6% to $173.13 as the high-end retailer of branded clothing indicated profit for the second-quarter would fall short of analysts' forecasts. Retailers Slide First Solar (FSLR)plunged 13% to $40.47 as the largest U.S. solar-panel maker said profit missed Wall Street projections. Written by Leon Lazaroff in New York >To contact the writer of this article, click here: LeonLazaroff.>.
Select the service that is right for you!COMPARE ALL SERVICES
- $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
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV