By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks were slightly lower
Wednesday as investors reassessed the timing and pace of
interest-rate hikes from the Federal Reserve amid rising Treasury
yields.
The S&P 500 (SPX) was 2 points, or 0.1%, lower at 1,986.34.
The Dow Jones Industrial Average (DJI) lost 10, or 0.1%, to 17,004.
The Nasdaq Composite (RIXF) fell 2 points, or 0.1%, to
4,547.33.
Fed triggers jitters: The yield on the 10-year Treasurys rose
3.5 basis points to 2.534%, rising for the fifth consecutive
session. Craig Erlam, market analyst at Alpari, said a lack of
fresh economic data is weighing on stocks globally, but rising bond
yields, particularly in the U.S., may be the bigger culprit.
"Rising yields may reflect a slight repricing of the first rate
hike, with some believing that markets had priced in a later hike
than the Fed is suggesting," he said in a note. But he said there
isn't any recent evidence to suggest the Fed has indeed brought
rate-hike expectations forward.
Investors will look to next week's Federal Open Market Committee
meeting for fresh guidance on rates.
Stocks to watch: Analysts at Pacific Crest cut Apple (AAPL) to
sector perform, citing a lack of new "profit drivers" to maintain
an outperform rating after the iPhone maker unveiled the latest
version of its popular phone and a new Apple Watch wearable device
on Tuesday. Shares rose 1%.
GT Advanced Technologies Inc. (GTAT) shares slid 11% after Apple
said it won't move toward broad use of sapphire cover screens,
which GT provides.
Shares of Microsoft (MSFT) could grab investors' attention on a
report in The Wall Street Journal that the technology group is set
to pay about $2 billion in a deal to buy the maker of the popular
"Minecraft" videogame.
Land's End Inc. (LE) shares rallied 12% after the clothing
retailer posted better-than-expected sales and profit in its fiscal
second quarter.
Krispy Kreme Doughnuts (KKD) skidded 4.6% after the doughnut
chain posted stronger sales, but adjusted profit missed
forecasts.
Other markets: European markets came off intraday lows. Asian
markets were lower, with the exception of a small rise for the
Nikkei 225 index . As investors backed away from stocks, gold
prices(GCZ4) rose and the dollar continued to climb, hitting
another nearly six-year high against the yen (USDJPY).
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