By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market fluctuates in
early trade on Wednesday as investors listened to Federal Reserve
Chairwoman Janet Yellen's testimony in front of the Joint Economic
Committee of Congress.
Selling of high-growth Internet stocks resumed in earnest,
resulting in sharp losses for the Nasdaq Composite.
The S&P 500 (SPX) were a point lower at 1,866.59. The Dow
Jones Industrial Average (DJI) regained poise and added 14 points,
or 0.1%, to 16,414.44.
The Nasdaq Composite(RIXF) sold off, falling 42 points, or 1%,
to 4,037.85.
Follow MarketWatch's live blog of today's stock-market
action.
Commenting on volatile trading, Paul Mangus, head of equity
research and strategy at Wells Fargo Private Bank, said now that
the earnings season is almost over markets are sensitive to macro
news.
"We have seen a change in sentiment among investors, a shift
from momentum stocks whose earnings disappointed and no longer
justify lofty valuations," he added.
A report ahead of the opening bell showed that slower economic
growth caused in part by brutal winter weather led to a sharp
decline in U.S. productivity in the first quarter.
The productivity of American businesses fell at a 1.7% annual
rate from January through March, the Labor Department said
Wednesday. It was more than expected by economists polled by
MarketWatch.
Yahoo shares lower, Electronic Arts rallies
Shares of Yahoo Inc. (YHOO) fell 6.3% after Chinese Internet
heavyweight Alibaba Group Holding Ltd. filed plans to list shares
in the U.S.
Yahoo has a 24% stake in Alibaba, and its initial public
offering is poised to be one of the biggest listings on record.
Read: Yahoo's Alibaba moment has finally arrived.
Electronic Arts Inc. shares (EA) rallied 16%. Late Tuesday, the
videogame maker reported fourth-quarter results that outstripped
Wall Street's projections.
Shares in Whole Foods Market Inc. (WFM) dived 19%, still
suffering after the upscale grocer late Tuesday cut its full-year
profit and sales forecasts.
AOL Inc. (AOL) shares plummeted 22% after the Internet company's
first-quarter profit dropped more than 60%, hurt by restructuring
and asset impairment charges, even as revenue topped
expectations.
After the closing bell, Tesla Motors Inc. (TSLA) will release
quarterly results. Tesla is expected to report first-quarter
earnings of 8 cents a share, according to a consensus survey by
FactSet. Tesla earnings: Balancing goals and costs
Also due after hours are results from coffee company Keurig
Green Mountain Inc. (GMCR), which is projected to post fiscal
second-quarter earnings of 95 cents a share.
Gold prices fall, oil rises
European markets edged higher, while Asian stock markets closed
lower. Russia's Micex index rallied 3.6%, after president Putin
said he was ready to talk over the crisis in Ukraine.
The U.S. dollar (DXY) was little changed against major rivals,
taking a slight breather after losses on Tuesday against the pound.
The pound (GBPUSD) traded near highs last seen in 2009, on the
doorstep of the $1.70 level.
Among commodities, June gold (GCM4) prices reversed gains and
fell $12, or 0.9%, to $1.296.9 an ounce. Crude for June delivery
(CLM4) rose $1.17, or 1.2%, to $100.68.
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