US Stocks Drop Ahead of Fed Minutes

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US stocks declined Wednesday; just a day after the Dow and the S&P 500 closed at record highs with investors waiting to hear from the Federal Reserve and after the data indicated the housing market regaining traction.

The Fed is scheduled to release the October policy meeting at 2 pm. The central bank finished the bond-buying program during the session and stuck with its pledge to keep interests rates at a low for a considerable period.

CNBC quoted Earnings Scout CEO, Nick Raich as having said, “A lot of people think they start dropping the considerable time language and start hinting at raising interest rates. The economy has been improving, the jobs picture has been improving, but the key for markets, and why a lot of people are skeptical, is can it continue to do that without Fed support, is this economy going to be strong enough to handle it.”

Raich added, “Prolonged weakness out of Europe is having an impact on multinational earning expectations.”

According to Reuters, the Dow Jones Industrial average dropped 0.23% or 40.71 points to 17,647.11 and the S&P 500 dropped 0.37% or 7.6 points to 2,044.2 while the Nasdaq Composite dropped 0.64% or 28.89 points to 4,672.55.

Chief investment officer of Multi-Asset Strategies and Solutions at Voya Investment, Paul Zemsky, said, “I can understand the market being a bit jittery here after making a new high and pausing ahead of the Fed minutes. Data was good today, so it’s hard to find a reason for the slight decline in stocks in the data.”

Target Corp gained 5.3% to $71.10 while Lowe’s climbed 5.9% to $61.98 after reporting their results.

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To contact the reporter of the story: Jonathan Millet at john@forexminute.com