By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks slid Wednesday as
investors paused after the largest four session rally in more than
a year. The Nasdaq Composite managed a small gain.
The S&P 500 (SPX) closed less than a point lower at 1,819.26
after rising for four previous sessions. That nearly 4% comeback
was the largest four-day gain since January 2013. On Wednesday,
consumer staples and energy led declining sectors.
The Dow Jones Industrial Average (DJI) gave up opening gains and
closed down 30.83 points, or 0.2%, at 15,963.94. The Nasdaq
Composite (RIXF) defied the general trend and finished the day
10.24 points, or 0.2%, higher at 4,201.29. After Tuesday's rally,
the tech-heavy index turned positive for 2014 and is now up 0.6% so
far this year.
Read the recap of our stock market live blog.
The stock market opened higher after comments from St. Louis
Federal Reserve President James Bullard boosted sentiment, but
indexes soon gave up gains and traded in narrow ranges. Bullard
said that recent weak economic data had not deterred his optimism
about the U.S. economy. "I'm still optimistic about the prospects
for this year. I think we can get 3% [growth] or better," he
said.
Stocks showed little reaction to the news that the Senate voted
in favour of debt-limit extension until March 2015.
Uri Landesman, president at Platinum Partners referred to
Wednesday's trading as a "technicians' market."
"At this point, markets are overvalued, and not only from the
valuation standpoint. Markets are not pricing in risks such as the
growing budget deficit or continuous accommodation from the Fed.
Those are long-term risks that investors should pay attention to,
but markets are focused on quick fixes," said Landesman.
Stocks rallied during the previous session after Federal Reserve
Chairwoman Janet Yellen pledged to keep interest rates low and said
the Fed would continue to taper the pace of bond purchases if the
economy keeps improving.
In earnings news, TripAdvisor (TRIP) shares rallied 7.2% after
the online travel site reported a rise in profits in the fourth
quarter.
(Read more on moving stocks like TripAdvisor:
http://www.marketwatch.com/story/davita-healthcare-deere-rise-lorillard-falls-2014-02-12.)
Shares of DaVita HealthCare Partners Inc.(DVA) rose 3.1% after
late Tuesday reporting better-than-expected fourth-quarter results
and posting an update profit outlook for 2014.
Shares of Fossil Group Inc. (FOSL) rose 3.5% after the
retailer's fourth-quarter profit, beat Wall Street
expectations.
Dr Pepper Snapple Group Inc. (DPS) shares added 2.2% after the
soft drink maker on Wednesday reported estimate-beating
fourth-quarter earnings.
Amazon.com Inc. (AMZN) fell 3.5% after the stock's rating was
cut to neutral from buy while its price target was lowered at
UBS.
Cisco (CSCO) shares fell 2.5% in after-hours trading, as the
company reported a 7.8% drop in quarterly revenue, matching the
unusually grim forecast it issued in November.
In other markets, European stocks rose for a sixth-straight
session, while the British pound rose against the dollar after the
Bank of England raised its forecast for U.K. economic growth in
2014 to 3.4%, from a prior forecast of 2.8%. The central bank also
signalled it won't hike rates until 2015 because there is too much
spare capacity in the labor market.
The dollar fell against the British pound, while gold (GCH4)
continued its upward march, building on a 7% rise so far this year.
Oil (CLH4) recaptured the $100 mark.
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