By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks slipped on Wednesday from
multiyear highs as investors mulled varied views from Federal
Reserve officials on the central bank's asset-purchase program.
"As we found out last month, we don't have a uniform voice
coming from the Fed," said Art Hogan, market strategist at Lazard
Capital Markets.
Minutes from the Federal Open Market Committee's January meeting
released Wednesday had some Fed members expressing concern about
the $85 billion a month in asset purchases.
Interest rates could remain exceptionally low "well into 2014,
but how much we spend on purchases could be scaled back at any
time," said Hogan of the Fed's monthly spending on assets.
However, potential changes to the Fed's monetary policy are
"less bothersome than some things on the horizon," said Hogan,
listing the March 1 deadline for massive cuts in government
spending, known as sequestration, and the outcome of Italian
elections.
The S&P 500 index (SPX) is up 6.7% so far this year, lifted
by the Fed's easing policy, better-than-anticipated earnings and
after politicians managed to reach a budget deal.
"We have not seen a bear market for stocks or economic downtrend
start, with the Fed maintaining an 'ultra-low' interest-rate policy
or signaling that it will continue to stimulate the economy through
easy monetary policy," offered Fred Dickson, chief investment
strategist at Davidson Companies.
Retreating some from highs last reached in October 2007, the
S&P 500 (SPX) shed 8.46 points, or 0.6%, to 1,522.48, with
materials the heaviest weight among its sectors and
telecommunications faring best.
Office Depot Inc. (ODP) and OfficeMax Inc. (OMX)(OMX) will join
in a $1.2 billion all-stock deal, the companies said Wednesday,
confirming an accord mistakenly announced ahead of its
completion.
The Dow Jones Industrial Average (DJI) shed 23.95 points, or
0.2%, to 14,011.7, with Caterpillar Inc. (CAT) shares among those
hit as the manufacturer of construction and mining equipment
reported global sales fell in the first quarter.
Boeing Co. (BA) rose 1.3% a day after engineers approved the
plane maker's contract offer, deflating a labor dispute.
After closing at a 12-year high Tuesday, the Nasdaq Composite
(RIXF) on Wednesday slipped 21.47 points, or 0.7%, to 3,192.12.
Apple Inc. (AAPL) fell 1.8% after supplier Foxconn Technology
Group froze hiring at its biggest factory in Shenzhen.
Toll Brothers Inc. (TOL) shed 5.2% after the luxury-home builder
reported earnings beneath expectations.
For every stock on the rise nearly two fell on the New York
Stock Exchange, where 412 million shares traded as of 2:40 p.m.
Eastern. Composite volume surpassed 2.6 billion.
Figures from the Commerce Department had builders breaking
ground in January on the most homes in more than four years and
permits for construction ahead climbing. Housing starts fell to a
890,000 rate, below expectations.
The rise in permits suggests "the January decline in starts will
be temporary, and as the year progresses, housing starts will
continue to push higher," said Greenhaus at BTIG.
A separate report from the Labor Department had the
producer-price index rising 0.2% in January after a 0.3% decline
the month before.
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