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U.S stocks end mixed as market digests Fed minutes; Dow dips 0.06%

Published 07/10/2013, 04:23 PM
Updated 07/10/2013, 04:24 PM
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Investing.com - U.S. stocks finished mixed to lower after investors digested the minutes of the Federal Reserve's June monetary policy meeting, concluding that the Fed remains on track to taper stimulus programs though the timing of which remains cloudy.

At the close of U.S. trading, the Dow Jones Industrial Average finished down 0.06%, the S&P 500 index ended up 0.02%, while the Nasdaq Composite index rose 0.47%.

Fed minutes released earlier revealed the some monetary authorities favored keeping stimulus programs in place despite improving economic indicators out of the U.S. housing, labor and manufacturing sectors of the economy.

Stimulus programs such as the Fed's monthly USD85 billion bond-buying program weaken the dollar to spur recovery, sending stocks rising in the process.

Talk of their dismantling can send stocks rising and falling, as tapering would mean less Federal Reserve support though a decision to wind down such measures would herald the arrival of a more robust economy, which would be bullish for stocks.

"Many members indicated that further improvement in the outlook for the labor market would be required before it would be appropriate to slow the pace of asset purchases," the minutes read.

"Some added that they would, as well, need to see more evidence that the projected acceleration in economic activity would occur, before reducing the pace of asset purchases."

Federal Reserve Chairman Ben Bernanke has said the U.S. central bank may begin scaling back asset purchases this year and end them next year if the economy improves, particularly the labor market, though uncertainty remained as to when Fed officials feel comfortable winding down stimulus measures.

Leading Dow Jones Industrial Average performers included Hewlett-Packard, up 1.85%, Cisco Systems, up 1.03%, and Microsoft, up 0.93%.

The Dow Jones Industrial Average's worst performers included American Express, down 1.65%, Bank of America, down 1.04%, and Verizon Communications, down 0.80%.

European indices, meanwhile, finished lower.

After the close of European trade, the EURO STOXX 50 fell 0.17%, France's CAC 40 fell 0.08%, while Germany's DAX 30 finished down 0.11%. Meanwhile, in the U.K. the FTSE 100 finished down 0.12%.

On Thursday, the U.S. is to release the weekly government report on initial jobless claims, a leading economic indicator, as well as official data on import prices.








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