By Victor Reklaitis and Sara Sjolin, MarketWatch
Apple debuts as Dow component
NEW YORK (MarketWatch) -- U.S. stocks pulled back Thursday,
taking a breather after the prior day's Federal Reserve-inspired
rally that sent the S&P 500 to its highest close in two
weeks.
The S&P 500 (SPX) fell 7 points, or 0.34%, to 2,085, while
the Dow Jones Industrial Average (DJI) dropped 81 points, or 0.45%,
to 17,994. The blue-chip gauge had been down by more than 100
points in the early going.
The Nasdaq Composite (RIXF) bucked the negative trend, rising 8
points, or 0.2%, to 4,991. The tech-heavy index briefly traded
about a point shy of the 5,000 level.
The modest declines followed a volatile session on Wednesday,
when the indexes erased early losses to finish markedly higher,
with the Dow climbing 227 points. The Fed, as expected, dropped its
pledge to remain "patient"
(http://www.marketwatch.com/story/fed-takes-step-to-rate-hike-but-scales-back-intended-pace-2015-03-18)
about raising rates, but signaled a slower increase in interest
rates than it foresaw just a few months ago.
"So in the end, while the Fed remains data dependent, the data
now seems to be saying 'it depends,'" said Sam Stovall, equity
strategist at S&P Capital IQ, in a note. But Stovall also said
his outfit's expectations for the year haven't changed much, as he
added: "We maintain our year-end S&P 500 target of 2250 as well
as our expectation for elevated market volatility."
Thursday's economic news: Before the market's open, a report on
jobless claims was a bit weaker than expected, and stock futures
maintained their losses after its release. Jobless claims for the
week ended March 14 came in at 291,000
(http://www.marketwatch.com/story/us-jobless-claims-barely-changed-at-291000-2015-03-19),
while economists polled by MarketWatch had expected 290,000.
The stock market also had a muted reaction to a
worse-than-anticipated figure for the Philadelphia Fed's
manufacturing index
(http://www.marketwatch.com/story/philly-fed-index-inches-lower-to-52-in-march-2015-03-19).
Stocks to watch:Apple Inc.(AAPL) is in the spotlight as it
debuts as a Dow Jones Industrial Average component. Shares were
down 0.2% after rising in the early going. See: How Apple's stock
will influence the Dow
(http://www.marketwatch.com/story/how-apples-stock-will-influence-the-dow-2015-03-19)
Nucor Corp.(NUE) was the S&P 500's biggest decliner after
the steel giant issued a warning about its first-quarter
results.
Lennar Corp.(LEN), another S&P component, gained after the
home builder reported earnings and revenue that beat expectations
(http://www.marketwatch.com/story/lennar-profit-revenue-beat-views-sees-improving-housing-market-2015-03-19).
Read more about Thursday's jumpiest stocks in the Movers &
Shakers column
(http://www.marketwatch.com/story/apple-to-debut-as-dow-component-nike-earnings-in-focus-2015-03-19)
Other markets: The dollar recouped some of its post-Fed losses
(http://www.marketwatch.com/storyno-meta-for-guid), with the ICE
dollar index (DXY) showing a sizable gain. The greenback had
dropped against its rivals after Wednesday's Fed announcement,
sliding to its lowest level
(http://www.marketwatch.com/story/dollar-trapped-in-a-tight-range-ahead-of-fomc-outcome-2015-03-18)
against the euro in eight days.
The euro (EURUSD) was moving sharply lower Thursday, as
attention reverted back to negotiations between Greece and its
creditors, with a meeting on the sidelines of this week's eurozone
summit. Read: Merkel plays down hopes for Greek deal at European
summit
(http://www.marketwatch.com/story/merkel-downplays-hopes-for-greek-deal-at-european-summit-2015-03-19).
European stock markets were mostly higher, keying off the Fed
optimism. The Fed statement came out after markets in Europe
closed, making Thursday's session the first chance for that
region's investors to react to the news. The U.K.'s FTSE 100
(http://www.marketwatch.com/storyno-meta-for-guid) was flirting
with a record closing high.
Asian markets closed mixed, with stocks in Shanghai extending a
seven-day winning streak
(http://www.marketwatch.com/story/chinese-stocks-advance-further-after-us-rally-2015-03-19).
Gold rallied
(http://www.marketwatch.com/story/gold-rallies-as-fed-signals-slow-pace-of-rate-hikes-2015-03-19),
while crude oil prices slumped
(http://www.marketwatch.com/storyno-meta-for-guid).
Subscribe to WSJ: http://online.wsj.com?mod=djnwires