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Overnight Markets: Wall Street down on Fed comments
by Himanshu Singh on Sep 24, 2013 at 04:17
Wall Street declined, with the Standard & Poor’s 500 Index registering its longest retreat in a month, as financial shares fell and Federal Reserve officials suggested the Fed could still begin scaling back its stimulus later this year.
The Dow Jones industrial average was down 50 points, or 0.32%, at 15,401. The Standard & Poor's 500 Index was down eight points, or 0.47%, at 1,702. The Nasdaq Composite Index was down nine points, or 0.25%, at 3,765.
William Dudley, president of the Federal Reserve Bank of New York, said in a speech the timeline that Fed Chairman Ben Bernanke articulated in June for scaling back the central bank's stimulus measures is "still very much intact," as long as the economy keeps improving.
Meanwhile, Dallas Fed President Richard Fisher warned that by standing pat the Fed had hurt its credibility and said he had urged colleagues to support a $10 billion reduction in the Fed's stimulus programme at last week's meeting.
Financials suffered the most with Citigroup (C.N) down 3.2%, a day after the Financial Times reported Citi had a significant drop in trading revenue during the third quarter. JPMorgan Chase (JPM.N) was down 2.5%.
US-listed shares of Blackberry (BBRY.O) closed up 1.1% after a consortium led by Fairfax Financial offered to buy the Canadian smartphone maker for $4.7 billion.
Apple (AAPL.O) shares were a bright spot, up 5% as the company sold 9 million iPhone 5s and iPhone 5c models since their launch on Friday.
The widely followed Dow Jones industrial average now includes three new components. Goldman Sachs (GS.N), Visa (V.N) and Nike (NKE.N) on Monday replaced Bank of America (BAC.N), Hewlett-Packard (HPQ.N) and Alcoa (AA.N).
Shares of Goldman fell 2.7%, while Visa declined 1.3%, and Nike dipped 0.6%. HP eased 0.1%, Alcoa slipped 0.1% and shares of Bank of America dropped 2.1%.
Homebuilders also fell with Lennar (LEN) sliding 1.7% and KB Home losing 3.4%.
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