This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Stocks Fail to Gain Traction Amid Fed's Mixed Messages

NEW YORK (TheStreet) -- Major U.S. stock averages closed in negative territory Tuesday as the S&P 500 and Dow Jones Industrial Average declined for a fourth consecutive day driven by uncertainties about the course of the Federal Reserve's economic stimulus program.

Fed officials threw the market into further confusion with mixed opinions on how much longer tapering should be delayed following the central bank's surprising decision earlier this month to maintain its current pace of bond-buying. The ongoing debate in Washington about funding the government for the new fiscal year that begins Oct. 1 is further complicating investor outlook.

The S&P 500 declined 0.26% to 1,697.42. The Dow Jones Industrial Average shed 0.43% to 15,334.59. The Nasdaq edged up 0.08% to 3,768.25.

Packaging Corp. of America (PKG - Get Report) dropped 0.48% to $58.27 while Boise (BZ - Get Report) tacked on 1.04% to $12.65. A large holder of Boise shares came out against the paper and packaging company's planned $2 billion sale to Packaging Corp. of America, saying that deal undervalues the company.


Fed presidents in public speeches have made varying references to the central bank's likely timetable for continuing to buy roughly $85 billion in bonds and other assets each month to stimulate growth. On Friday, Kansas City Federal Reserve Bank President Esther George said the central bank's decision to delay tapering was hurting its credibility. Dallas Federal Reserve Bank President Richard Fisher echoed George's remarks on Monday, saying that an "increase uncertainty about the future conduct of policy and call the credibility of our communications into question."

However, New York Fed Bank President William Dudley, publicly emphasized the economy's need for continued, aggressive accommodation while Atlanta Federal Bank President Dennis Lockhart voiced concern about the overall strength of the U.S. economic recovery.

Economic headlines Tuesday were mixed, leading to more uncertainty. The S&P/Case-Shiller 20-city home price index showed an as expected year-over-year gain of 12.4% for July, the largest increase since February 2006 while the Conference Board's consumer confidence index slipped to a lower than expected 79.7 for September from an upwardly revised 81.8 in August, versus the average expectation of 79.9 from 81.5.

The benchmark 10-year Treasury was up 14/32, diluting the yield to 2.656%.

-- Written by Andrea Tse in New York

>To contact the writer of this article, click here: Andrea Tse.>

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
BZ $0.00 0.00%
PKG $82.86 0.00%
AAPL $128.46 0.00%
FB $78.97 0.00%
GOOG $558.40 0.00%

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs