By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks reversed early morning
losses and edged higher Wednesday led by gains in the tech and
health-care sectors.
Prices increases were tepid, however, as investors fretted about
the timing and pace of interest-rate hikes from the Federal Reserve
amid rising Treasury yields.
The S&P 500 (SPX) was 5 points, or 0.2%, higher at 1,993.55.
The Dow Jones Industrial Average (DJI) added 50 points, or 0.3%, to
17,062.61. The Nasdaq Composite (RIXF) gained 26 points, or 0.6%,
to 4,578.48.
Fed triggers jitters: The yield on the 10-year Treasurys rose 3
basis points to 2.53%, rising for the fifth consecutive session.
Quincy Krosby, market strategist at Prudential Financial, said that
in the absence of economic data, investors are remaining cautious
until the next FOMC meeting.
"Markets are sensitive to the end of QE and will be nervous
until the crucial FOMC meeting and press conference next week. It
is not unusual to see weakness after big gains last month," Krosby
said.
"There is also a case for a strong IPO supply, including
Alibaba. Managers tend to sell stocks in their portfolios to raise
cash for new stocks," she added.
Stocks to watch: Apple Inc. (AAPL) unveiled the highly
anticipated iPhone 6, iPhone 6 Plus and Apple Watch plus a mobile
payments system on Tuesday. Goldman Sachs called the launch
"impressive" and lifted its target for the stock price. Read more:
Why now may be the best time to own Apple.
While Apple is basking in the sun, some are being shunned
because of Apple's decisions: GT Advanced Technologies Inc. (GTAT)
shares slid 14% after Apple said it won't move toward broad use of
sapphire cover screens, which GT provides.
eBay Inc. (EBAY) shares slid 3.2% as Analysts suggest it will
face greater competition for its PayPal mobile payment service
following the announcement of Apple Pay.
Land's End Inc. (LE) shares rallied 12% after the clothing
retailer posted better-than-expected sales and profit in its fiscal
second quarter.
Krispy Kreme Doughnuts (KKD) skidded 4.6% after the doughnut
chain posted stronger sales, but adjusted profit missed forecasts.
For more on today's movers, read our Movers & Shakers
column.
Other markets: European markets closed mostly lower. Asian
markets finished lower, with the exception of a small rise for the
Nikkei 225 index . As investors backed away from stocks, gold
prices(GCZ4) ticked up and the dollar continued to climb, hitting
another nearly six-year high against the yen (USDJPY). Oil prices
fell.
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