Mkt not liking more stimulus
=DJ US Stocks Slip After Fed Minutes; DJIA Off 26
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By Kristina Peterson and Donna Kardos Yesalavich
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--U.S. stocks slipped Wednesday after the U.S. Federal Reserve said further monetary stimulus measures may be needed and rolled back its economic outlook, threatening to snap a six-day winning streak.
Minutes from the last Federal Reserve meeting showed policy makers raised the possibility that new stimulus measures may be needed given the "relatively modest" worsening in the economic outlook. However, Fed board members agreed that no further accommodation was needed at the time. The Dow Jones Industrial Average dropped 26 points, or 0.2%, to 10339 after the release of the FOMC minutes, as investors digested the bleaker economic outlook.
"They're being realistic that growth expectations for the second half of the year are certainly a bit lower than they were in January or in April," said Brian Lazorishak, portfolio manager and quantitative analyst at Chase Investment Counsel. "It's no big surprise. It's pretty much what everyone was expecting."
However, he added, "it is positive that they're not seeing any pickup in inflation expectations and they're not seeing a rapid deterioration in growth."
Stocks had been trading in a narrow range Wednesday, losing earlier gains just ahead of the minutes' release. Boosting the market earlier Wednesday, a strong second-quarter report from Intel buoyed technology stocks, though financials lagged ahead of bank earnings.
Helped by tech stocks' gains, the Nasdaq edged up 0.1% to 2244, while the Standard & Poor's 500 index fell 0.3% to 1092.
Economic data continue to disappoint, underscored Wednesday by a bigger-than-expected drop in U.S. retail sales and a smaller-than-expected increase in business inventories.
The dollar weakened against both the euro and the yen. The U.S. Dollar Index, which tracks the U.S. currency against a basket of others, slid 0.3%. Demand for Treasurys advanced, with the 10-year note up, pushing the yield down to 3.06%.
-By Kristina Peterson, Dow Jones Newswires; 212-416-2917; kristina.peterson@dowjones.com
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(END) Dow Jones Newswires
July 14, 2010 14:13 ET (18:13 GMT)
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