Investing.com -- U.S. stocks closed broadly lower on Wednesday reversing territory late in the session, even as Federal Reserve chair Janet Yellen indicated that improving economic conditions will likely enable the Fed to raise interest rates at some point this year.
The Dow Jones Industrial Average and the S&P 500 Composite index each fell mildly to halt a four-day winning streak, while the NASDAQ Composite index also closed lower to end a slight winning streak of its own. The Dow fell 3.41 or 0.02% to 18,050.17, while the NASDAQ lost 5.95 or 0.12% to end Wednesday's session at 2,107.40.
The S&P 500, meanwhile, dipped 1.55 or 0.07% to 2,107.40, as six of 10 sectors closed in the red. Stocks in the Energy and Basic Materials sectors lagged, each falling more than 1% on the session. Stocks in the Financials, Technology, Health Care and Utilities industries led, each closing in the green.
Financial stocks received a boost by Bank of America Corporation (NYSE:BAC), which gained more than 3.25% to 17.69. Earlier on Wednesday, Bank of America reported its largest quarterly profit in nearly four years, as its expenses declined to its lowest level for a 3-month period since the financial crisis. It came one day after JPMorgan Chase & Co (NYSE:JPM) and Wells Fargo & Company (NYSE:WFC) kicked off earnings season for U.S. banks with mixed results.
Apple Inc (NASDAQ:AAPL) ended Wednesday's session as the top performer on the Dow, after the world's largest company unveiled a new model of the iPod Touch, replete with an upgraded chip and a megapixel camera. Apple officials described the product as "the best iPod Touch yet." Shares in Apple gained 1.21 or 0.96% to 126.82. The worst performer was Chevron Corporation (NYSE:CVX), which fell 1.31 or 1.37% to 94.24, as crude futures plunged more than 3% on the session, following a steady decline in U.S. production last week.
The biggest gainer on the NASDAQ was Celgene Corporation (NASDAQ:CELG), which surged nearly 7% to 131.39 on Wednesday after the New Jersey-based biotechnology company agreed to acquire Receptos Inc (NASDAQ:RCPT) in a $7.2 billion deal. The merger gives Celgene access to Receptos' experimental, potential multi-billion drug Ozanimod, which is being marketed to treat ulcerative colitis and relapsing Multiple Sclerosis. At one point, Celgene soared nearly 11% to a record-high of 135.98, sending the NASDAQ Biotech index to a record-high for the third time in a span of three weeks.
Netflix Inc (NASDAQ:NFLX) finished as the worst performer on the NASDAQ, one day after completing a 7-for-1 stock split. Netflix, which is announcing its quarterly earnings after the bell, fell more than 1.6% to an intraday low of 97.05, before rebounding to close at 98.13.
The top performer on the S&P 500 was Macy`s Inc (NYSE:M), which surged more than 7% after prominent hedge fund Starboard Value disclosed a new stake in the retail giant's common share. Speaking at CNBC's Delivering Alpha conference in New York, Starboard investor Jeff Smith suggested that Macy's should sell-off its vast real estate holdings and complete a lease-buyback program. Macy's shares gained 5.28 or 7.91% to close at 72.01.
Netflix was also the worst performer on the S&P 500, just below Ensco, which fell 1.18 or 5.57% to 20.01.
On the New York Stock Exchange, declining issues outnumbered advancing ones by a 1,880 to 1,254 margin.