By Alexandra Scaggs
U.S. stocks pared some gains after minutes from the Federal
Reserve's latest policy-setting meeting indicated officials debated
whether to raise rates sooner than expected.
The Dow Jones Industrial Average tacked on 25 points, or 0.1%,
to 16945. The S&P 500 index gained one points, or 0.1%, to
1983. Technology stocks lagged, with the Nasdaq Composite Index
declining four points, or 0.1%, to 4523.
Before regaining their poise, stocks in the wake of the minutes
turned lower in afternoon trading as the Fed gave more evidence of
an intensifying debate on how to respond to a quickly strengthening
labor market. Investors have been keeping a close eye on when the
Fed could raise interest rates. Many say it has helped support
stock-market gains this year.
"Markets are nervous about what the Fed's [rate raise] is going
to look like," said David Lebovitz, global markets strategist for
J.P. Morgan Funds. "The stock market seems to get particularly
nervous...mostly because it's not really sure of what that
entails."
Mr. Lebovitz doesn't think that the Fed is rushing to raise
rates, however. "They're continuing to hedge their bets," he
said.
Central bankers are in the spotlight this week, between the
meeting minutes and a closely watched annual gathering of central
bankers in Jackson Hole, Wyo., where Fed Chairwoman Janet Yellen
and European Central Bank President Mario Draghi are scheduled to
speak later this week.
Stocks in the U.S. and Europe have recently staged a recovery
from a mid-July pullback, which was sparked by a bout of
geopolitical fears and concerns about the end of the Fed's loose
monetary policy. As of Tuesday's close, the Dow was off 1.3% from
its July 16 record and the S&P was just 0.3% below its July 24
record.
European stocks were mostly lower, with the Stoxx Europe 600
Index down 0.1% in recent trading.
"There's a lot of mixed sentiment" from investors in Europe,
said Michael Antonelli, sales trader with Robert W. Baird. He
recently visited Baird clients in the region, and said many "are on
the fence."
In corporate news, Home Depot led the Dow higher, gaining 1.9%.
That advance came on the back of Tuesday's 5.6% gain on strong
second-quarter earnings and upbeat housing-market data. Its
competitor Lowe's was little changed, after reporting strong
second-quarter results but lowering its sales outlook for the
year.
PetSmart Inc. said it would explore strategic alternatives,
including a possible sale. The company said it would implement a
cost-reduction program. Shares rose 0.3%.
In commodity markets, crude-oil futures rose 0.2% to $93.07 a
barrel. Gold futures slipped 0.2% to $1,294.70 an ounce.
Write to Alexandra Scaggs at alexandra.scaggs@wsj.com