By Victor Reklaitis and Barbara Kollmeyer, MarketWatch
Goldman analysts: It has been a period of 'indigestion'
NEW YORK (MarketWatch)--U.S. stocks closed slightly lower
Wednesday, building a little on losses from the previous day, when
a dollar surge and growing expectations of a rate hike by the
Federal Reserve helped trigger the Dow's biggest point drop in five
months.
The S&P 500 (SPX) finished lower by 3.92 points, or 0.2%, at
2,040.2 after switching between small gains and losses throughout
the session. The
The Dow Jones Industrial Average (DJI) closed down by 27.55
points, or 0.2%, to 17,635.39, while the Nasdaq Composite (RIXF)
lost 9.85 points, or 0.2%, to end at 4,849.94. The S&P 500 and
Dow closed at their lowest levels since Feb. 2, while the Nasdaq
ended at its lowest level since Feb. 11.
"The topic of discussion remains focused on the Fed's start,
pace and duration of a new rate-tightening program," said Sam
Stovall, equity strategist for S&P Capital IQ, in a note
Wednesday. He said his shop still expects stocks will finish up for
the year, but in the near term, equities could see
consolidation--meaning a drop or sideways action.
Some analysts suggested the market is due to calm down.
In a note, Goldman Sachs analysts Noah Weisberger and Aleksandar
Timcenko said "winds have shifted with a looming U.S. tightening as
the current source of market disquiet." But they think the
tightening "will ultimately prove benign, though perhaps after some
period of 'indigestion."
See: Here's what stocks do in the months just before a rate hike
(http://www.marketwatch.com/story/heres-what-stocks-do-in-the-months-just-before-a-rate-hike-2015-03-06).
Tuesday's steep losses
(http://www.marketwatch.com/story/us-stocks-futures-drop-as-dollar-surges-apple-in-focus-2015-03-10)
erased year-to-date gains for the S&P 500 and the Dow
industrials. The two stock benchmarks are both down about 1% for
the year as of Wednesday's close, while the tech-heavy Nasdaq is up
2.4%.
Wednesday's muted action came as the dollar continued to push
higher against rivals, with the euro (EURUSD) trading at a nearly
12-year low.
Read more: The blistering pace of the dollar's rally is rattling
markets
(http://www.marketwatch.com/story/the-blistering-pace-of-dollars-rally-is-rattling-markets-2015-03-10)
Individual movers & shakers: Tyson Foods Inc.(TSN) was the
biggest loser among S&P 500 components, closing down 5.6%.
Poultry producers took it on the chin
(http://www.marketwatch.com/story/poultry-producers-fall-with-avian-flu-discoveries-2015-03-11)
after the U.S. Department of Agriculture confirmed that turkey
flocks in Missouri and Arkansas have been infected with avian
flu.
SanDisk Corp.(SNDK) was one of the S&P 500's biggest
gainers, finishing up by 3.2% after Goldman Sachs analysts added
the stock to their so-called conviction buy list.
Read more about Wednesday's jumpiest stocks in Movers &
Shakers ()
Other markets: Gold (GCJ5) fell further
(http://www.marketwatch.com/story/gold-bounces-back-from-november-lows-2015-03-11)
as the dollar (DXY)charged ahead
(http://www.marketwatch.com/story/dollar-up-after-losing-a-chunk-of-gains-overnight-2015-03-11).
Oil prices
(http://www.marketwatch.com/story/oil-futures-rebound-ahead-of-us-oil-stockpile-data-2015-03-11)(CLJ5)
also settled lower.
European stocks climbed
(http://www.marketwatch.com/story/european-stocks-rally-as-weaker-euro-fuels-exporters-2015-03-11),
aided by the falling euro as the European Central Bank's
bond-buying program continued. In Asia, Hong Kong equities dropped
to a two-month low
(http://www.marketwatch.com/story/hong-kong-stocks-fall-to-two-month-low-on-weak-china-data-2015-03-11)
after more signs of weakness in the Chinese economy, though
Japanese stocks rebounded.
Anora Mahmudova in New York contributed to this article.
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