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Overnight Markets: Wall Street down after Fed minutes
by Himanshu Singh on Aug 22, 2013 at 04:21
Wall Street declined, with the Dow Jones Industrial Average registering its longest slump in 13 months, after minutes of the Federal Reserve’s July meeting showed officials support stimulus cuts this year if the economy improves.
The Dow Jones fell 106 points or 0.7%, to 14,897, the S&P 500 lost 10 points or 0.58%, to 1,643 and the Nasdaq Composite dropped 14 points or 0.38%, to 3,600.
Minutes from the meeting showed nearly all the policymakers on the central bank's Federal Open Market Committee agreed that a change to the stimulus was not yet appropriate, and only a few thought it would soon be time to "slow somewhat" the pace of the stimulus policy.
Yields on the 10-year US Treasuries note rose after the announcement, touching 2.89%.
Meanwhile, a report today indicated that sales of previously owned US homes climbed more than forecast in July to the fastest pace since November 2009 as more buyers entered the market.
Retailers were in focus for a second consecutive day, with earnings reports from Lowe's, Target and others.
Staples (SPLS.O) slumped 15.3% after reporting weaker-than-expected quarterly results on dismal sales in international markets and cut its outlook for the year.
Target (TGT.N) warned its annual profit may be near the low end of its forecast as consumer spending remains cautious, sending shares down 3.6%.
Petsmart (PETM.O) dropped 5.3% after its results, while American Eagle Outfitters (AEO.N) tumbled 9.9% after giving a weak outlook.
On the positive side, home improvement chain Lowe's (LOW.N) rose 3.9% after it reported a bigger-than-expected rise in profit and sales.
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