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Overnight Markets: US stocks decline on Fed minutes
by Himanshu Singh on Jan 04, 2013 at 03:38
US stocks slipped on Thursday as Federal Reserve policy makers said they will probably end their $85 billion monthly bond-purchase programme sometime in 2013.
The Dow Jones industrial average fell 21 points, or 0.16%, to 13,391. The Standard & Poor's 500 Index shed three points, or 0.21%, to 1,459. The Nasdaq Composite Index lost 12 points, or 0.38%, to 3,101.
Equities gained earlier yesterday after economic data showed U.S. private-sector employers stepped up hiring in December, offering further evidence of underlying strength in the economy as 2012 ended. The Labour Department will tomorrow release its payrolls report for December.
Shares declined later after the minutes from the Fed's December policy meeting, released on Thursday, showed increasing reticence about further expanding the central bank's $2.9 trillion balance sheet.
Some policymakers thought asset buying should be slowed or stopped before the end of 2013 while others highlighted the need for further stimulus. However, the Fed look set to continue its open-ended stimulus programme for now.
Investors also turned their focus to looming battles in Congress, including the likelihood of bitter fights over budget cuts and raising the federal debt ceiling.
Retailers gained yesterday after several major companies in the sector beat expectations of modest sales increases in December.
Costco Wholesale Corp added 1% after the company reported a better-than-expected 9% rise in December sales at stores open at least a year.
Gap Inc surged 2.3% following news that the retailer will buy women's fashion boutique Intermix Inc, the Wall Street Journal reported.
On the negative side, Family Dollar Stores Inc plunged 13% on the company's report of lower-than-expected quarterly profit.
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