By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
NEW YORK (MarketWatch) -- After two days of selling led by
momentum plays, U.S. stocks found their footing and edged slightly
higher on Wednesday.
Investors await minutes from the most recent Federal Open Market
Committee meeting due to be released at 2 p.m. Eastern Time. Also
read: Minutes may shed some light on how and when the Fed will
hike
The S&P 500 (SPX) gave up some of the opening gains and was
2 points, or 0.1%, higher at 1,966.23. The Dow Jones Industrial
Average (DJI) added 21 points, or 0.1%, to 16,927.37. The Nasdaq
Composite (RIXF) dipped in and out of negative territory and was
trading near the flatline at 4,390.85.
Follow MraketWatch's live blog of today's stock-market
action.
"In the short-term, we are concerned that there is a bit of
optimism about the second-quarter earnings. Expectations for
overall markets are high and this lead to some short-term downside
if companies come short," said Joe Bell, senior equity analyst at
Schaeffer's Investment Research.
"We believe this quarter financials are likely to surprise on
the upside, just because there is too much skepticism about the
sector, the only one to deliver negative growth," he added.
"Investors will be hoping that June's Fed minutes, released
later today, will provide some clarity and reassurance that
(Federal Reserve Chairwoman Janet) Yellen can continue to hold sway
over her more hawkish colleagues," said Rebecca O'Keefe, head of
investment at stockbroker Interactive Investor, in a note.
"However, if the strong employment data we have seen over the past
week continue, that may not last."
Alcoa Inc. (AA) shares rose 3.3% after the company said it swung
to a second-quarter profit late Tuesday.
Shares of Gigamon Inc.(GIMO) sank 31% after the
networking-hardware company lowered its second-quarter revenue
guidance on Tuesday.
Container Store Group Inc. (TCS) shares plunged 9.3% after the
organization-product company posted a loss of 7 cents, a penny more
than expected. (Read more in Movers and Shakers column:
http://www.marketwatch.com/story/alcoa-container-store-wd-40-are-stocks-to-watch-2014-07-09.)
In overseas markets, Europe's Stoxx 600 headed for its fourth
day in the red, while the Hong Kong Hang Seng index lost 1.6% after
softer-than-expected inflation data from China.
Crude-oil prices (CLQ4) were largely stable, while gold (GCQ4)
moved higher. The dollar (DXY) was mostly higher.
More must-reads from MarketWatch:
If ever the stock market flashed a 'sell' signal, it's now
Another sign the bull market is nearing its end
Cupcakes are everything that's wrong with America
Subscribe to WSJ: http://online.wsj.com?mod=djnwires