Stocks turned mixed on Wednesday morning as investors awaited more clarity on interest rates from the Federal Reserve.
the Dow Jones Industrial Average added 0.05% and traded earlier with an intraday record high of 20,767. The S&P 500 was down 0.1% and the Nasdaq declined 0.12%.
Wall Street returned from the long holiday weekend on Tuesday with enough energy to push stocks to new records for their second session in a row. The Dow has notched records for the past eight sessions.
The markets are swiftly approaching an overbought scenario, according to Helene Meisler of Real Money, our premium site for active investors. "According to my own work, we will be overbought later this week," Meisler wrote in Wednesday's column. "Longtime readers know that when we are staring at a string of red numbers to be dropped, I consider the market oversold. When we are staring at a string of green or black numbers to be dropped, we are overbought."
The central bank will release minutes from its Jan. 31-Feb. 1 meeting on Wednesday afternoon. The release will likely confirm a recent switch in rhetoric among Fed members in signaling that the U.S. economy is heating up and that it must act soon. The minutes could also signal the likelihood of a move on interest rates in March.
"The Fed meets next in March, and if three rate hikes are to happen this year, as the Fed has signaled they may, then the March meeting must certainly be considered 'live'," said David Joy, Ameriprise chief market strategist, in a note. "If the March meeting is not considered 'live' that implies the possibility of three rate hikes being squeezed into the final seven months of the year, something the Fed would likely hope to avoid for fear of creating the impression that in its own mind it had fallen behind the inflation curve."
Existing home sales in the U.S. in January rose to their best level since February 2007. Sales of previously owned homes rose by 3.3% in January to an annual rate of 5.69 million. Inventory remained constrained, dropping 7.1% year over year. The median price of homes increased 7.1%.
Crude oil pulled back from Tuesday's rally, returning to a level below $54 a barrel once again. Crude surged on Tuesday on optimism the Organization of Petroleum Exporting Countries' recent production cut agreement was beginning to be felt on global stockpiles. OPEC also signaled it would be willing to work with the U.S. as a "strategic partner" in balancing markets.
West Texas Intermediate crude was down 1.3% to $53.65 a barrel on Wednesday morning.
The earnings season barrels on this week with a particular focus on the retail sector. Walmart (WMT) - Get Walmart Inc. Report , Macy's (M) - Get Macy's Inc Report , and Home Depot (HD) - Get Home Depot, Inc. (HD) Report each reported better-than-expected profit on Tuesday, and Gap (GPS) - Get Gap, Inc. (GPS) Report , J.C. Penney (JCP) - Get J. C. Penney Company, Inc. Report , and Foot Locker (FL) - Get Foot Locker, Inc. Report are set to report later in the week. More than four-fifths of S&P 500 companies have reported their earnings so far this season with 66% of those exceeding earnings estimates and 53% surpassing sales consensus.
TJX Cos. (TJX) - Get TJX Companies Inc Report , which owns TJ Maxx, narrowly beat profit and sales estimates over its fourth quarter. Earnings of $1.03 a share crept higher from 99 cents in the year-ago quarter and exceeded consensus of $1. Revenue of $9.47 billion beat estimates of $9.44 billion. Same-store sales rose by 3%, topping expectations of 2.5% growth. The retailer also said it plans to repurchase at least $1.3 billion worth of shares over this fiscal year.
New contracts increased by 14%, while deliveries increased by 12% over the year earlier. Toll ended its quarter with a backlog 19% higher than a year earlier, sitting at $4.35 billion. Toll also announced a new quarterly dividend of 8 cents a share, payable on April 28.
Dish Networks (DISH) - Get DISH Network Corporation Class A Report swung to a profit in its recent quarter from a loss in the year-ago quarter. Earnings of 70 cents a share were far better than a loss of 27 cents a year earlier, and bested consensus by 4 cents. Dish reported 28,000 more net Pay-TV subscribers over the quarter. The stock gained 1% on Wednesday.
Garmin (GRMN) - Get Garmin Ltd. (GRMN) Report surged 9% on Wednesday after reporting a better-than-expected quarter and issuing robust growth estimates for 2017. Adjusted earnings of 73 cents a share surpassed consensus of 58 cents. Sales rose 10% to $860.8 million, well above estimates of $793 million.
For the full-year, Garmin anticipates adjusted earnings of $2.65 a share on $3.02 billion in sales. Analysts anticipated $2.66 a share on $2.97 billion.
Bristol-Myers (BMY) - Get Bristol-Myers Squibb Company Report climbed more than 1% Wednesday after billionaire activist investor Carl Icahn took a stake in the drug giant. Icahn owns a large stake and believes the company has a good pipeline that would help make it an attractive takeover target, sources told The Wall Street Journal. Bristol-Myers announced Tuesday it would add three directors to its board and buy back $2 billion in stock in a pact with another activist, Jana Partners.
Argos Therapeutics (ARGS) moved sharply lower, down 67%, on Wednesday on poor results from a study into a cancer treatment. The drugmaker said an independent review into a Phase 3 trial of its renal cell carcinoma treatment be discontinued for lack of results. The study's primary endpoint had been overall survival.
Unilever (UL) - Get Unilever PLC Sponsored ADR Report shares rose 5% Wednesday after the consumer products company issued a statement saying it would review options to enhance shareholder value after rejecting a $143 billion offer from Kraft Heinz (KHC) - Get Kraft Heinz Company (KHC) Report . The company said it was "conducting a comprehensive review of options available to accelerate delivery of value for the benefit of our shareholders."