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NEW YORK (TheStreet) -- Stocks backed off session highs on Wednesday as a selloff among luxury goods companies undercut the S&P 500's positive run.

The S&P 500 was up 0.5%, the Dow rose 0.51%, and the Nasdaq gained 0.7%.

Michael Kors (KORS)  was having a negative impact on fellow luxury goods companies. The luxury accessories brand plummeted more than 21% after issuing light first-quarter sales guidance of $930 million to $950 million, below an expected $1.09 billion. Fossil (FOSL) - Get Free Report, Kate Spade (KATE) , Vera Bradley (VRA) - Get Free Report, Guess (GES) - Get Free Report and Coach (COH)  all were trading lower. 

High-momentum tech stocks were the best performers, getting caught up in a broad-based rally. Apple (AAPL) - Get Free Report, Microsoft (MSFT) - Get Free Report, Oracle (ORCL) - Get Free Report and IBM (IBM) - Get Free Report each added more than 1%, while the Technology SPDR ETF (XLK) - Get Free Report climbed 0.91%. 

Tiffany (TIF) - Get Free Report shares spiked nearly 10% on Wednesday after the jeweler earned 81 cents a share in its first quarter, down from 97 cents a year earlier though better than an expected 70 cents. Click here for more.

Toll Brothers (TOL) - Get Free Report was slightly lower% after posting a mixed quarter. The homebuilder posted net income of 37 cents a share, 2 cents higher than expected, while revenue slipped 0.9% to $852.6 million and missed estimates.

Hormel Foods (HRL) - Get Free Report jumped 4% after acquiring organic brand Applegate for $775 million. The deal is expected to contribute 7 cents to 8 cents in earnings per share by 2016.

Shares of tobacco companies Reynolds (RAI) and Lorrillard (LO) were on watch after a planned acquisition was approved by the Federal Trade Commission. Reynolds must first sell its Winston, Kool, Salem and Maverick brands in order to purchase Lorrillard.

Markets finished in the red on Tuesday as signs of economic recovery from the housing sector and durable goods numbers exacerbated fears the Federal Reserve would hike rates sooner than expected. Click here for more.

"A test of investors' nerves is likely to stem from a looming steeping of the yield curve, as the Fed opens the door for a future rate hike," said Peter Cardillo, chief market economist at Rockwell Global Capital. "Equities are likely to adjust before liftoff. We continue to recommend being cautious, as a pullback will offer a great buying opportunity."