By Anora Mahmudova and Sara Sjolin, MarketWatch

Fed likely to keep rates lower for longer than market expected

NEW YORK (MarketWatch) -- U.S. stocks ended marginally lower on Wednesday, as investors wrestled with interpreting minutes from the Federal Reserve's latest policy meeting.

Minutes showed that officials were not in a rush to raise interest rates, as "many" on the Fed said a premature rate hike would harm the recovery, while only "several" thought a later move would risk high inflation.

Reaction on the stock market was smaller than in the bond market. Treasurys rallied, driving yields down 6 basis pints to 2.08%.

The S&P 500 (SPX) closed less than a point below its previous closing record, reached on Tuesday, ending at 2,099.66. Energy stocks led losses following a drop in oil prices. Utilities jumped more than 2%, leading gains.

The Dow Jones Industrial Average (DJI) fell 17.41 points, or 0.1%, to 18,030.17. More than two-thirds of its 30 members ended lower, with Exxon Mobil and Chevron Corp leading the decliners.

The Nasdaq Composite (RIXF) defied the trend and closed 7.10 points, or 0.1%, higher at 4,906.36.

Anthony Valeri, investment strategist at LPL Financial, said that markets over the past several weeks got a little cautious, pricing in a rate hike in June.

"Markets initially welcomed news that lower rates will stay for longer. Companies love easy money. The Fed has done a good job at managing market expectations and when Janet Yellen speaks in front of the Congress, we will get more clarity about the timing of the first rate hike," he said.

Earlier, markets had been under pressure following a batch of disappointing economic reports and continued stalemate between Greece and its creditors.

Chris Gaffney, senior market strategist at EverBank Wealth Management, said the fact that markets reacted negatively to poor economic data is a positive, as it indicates markets are less dependent on the Federal Reserve's policies.

Despite Wednesday's retreat, the S&P 500 held above certain resistance levels, challenging bearish investors. Jason Hunter, technical analyst at J.P. Morgan, wrote that he is not looking for a definitive move higher from the S&P 500's current range, despite recent gains that have propelled the benchmark index to record levels.

"While the market can advance further, our broader outlook for a mostly range-bound first half still stands," Hunter wrote.

Data: Economic releases on Tuesday came in weaker than expected. U.S. wholesale prices posted a record 0.8% decline in January after an unprecedented drop in energy costs, the Labor Department said Wednesday. The drop was larger than expected. Meanwhile, construction on new U.S. homes dropped 2% in January to an annual rate of 1.07 million units, as heavy snowfall hindered builders in some regions such as the Midwest and Northeast. The numbers matched consensus forecast of economists polled by MarketWatch.

Industrial production rose a seasonally adjusted 0.2% in January, the Federal Reserve said Wednesday. Economists polled by MarketWatch had expected a 0.4% rise. Another sign of weakness came in a slight downward revision to output in the past four months.

Angie's List Inc. (ANGI) shares surged 59% to $7.77, after the company posted quarterly profit and revenue that topped Wall Street's expectations.

Boston Scientific Inc. (BSX) stock jumped 12% and was the top performer on the S&P 500. The biotech company late Tuesday said it has settled with Johnson & Johnson Inc. (JNJ) over the acquisition of Guidant Corp. in 2004.

Fossil Group Inc.(FOSL) dropped 16% after the company late Tuesday reported adjusted fourth-quarter earnings that missed expectations, along with revenue that disappointed.

For more on today's notable movers, read our Movers & Shakers column.

Other markets: European stock markets moved firmly higher, boosted by optimism that the Greek debt drama could soon come to an end. Asian markets also got a lift from Greece and closed with gains.

Crude-oil prices (CLH5) fell 3.3%, ending a three-session winning streak, that lifted priced more than 9%. Gold prices settled at the lowest level in nearly seven weeks, falling 0.7% to $1,200.20. The dollar (DXY) which was higher earlier, fell against its main rivals after the Fed minutes.

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