Stocks Wobble on Wall Street Wednesday
(AP) -- Stocks wobbled on Wall Street Wednesday as investors looked over another big batch of earnings reports from U.S. companies.
Wall Street is also looking ahead to an announcement in the afternoon from the Federal Reserve, which is expected to give its outlook on inflation and the economy and also detail how it plans to wind down its monthly bond purchases.
The S&P 500 fell 0.1% as of 10:16 a.m. Eastern. Stocks in the index were roughly split between gainers and losers. The Dow Jones Industrials fell 107 points, or 0.3%, to 35,945 and the Nasdaq rose slightly. All three set their latest record closing highs a day earlier.
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Smaller-company stocks outpaced the broader market in a sign that investors were feeling confident about economic growth. The Russell 2000 rose 0.8%.
Industrial companies posted some of the biggest losses. Agricultural equipment maker Deere fell 5%. Workers at the company rejected a contract offer Tuesday that would have given them 10% raises and decided to remain on strike in the hopes of securing a better deal.
Health care and technology stocks also fell. U.S. crude oil prices fell 2.3%, but energy stocks were mixed.
Bond yields rose. The yield on the 10-year Treasury rose to 1.56% from 1.54% late Tuesday.
Investors were handed a mixed bag of corporate report cards. Activision Blizzard slumped 13.7% after the maker of video games like "World of Warcraft" gave investors a disappointing profit forecast. Zillow Group dropped 18% after the real estate website operator reported disappointing financial results and said it is shutting down its home-flipping business.
CVS Health rose 4.2% after the drugstore chain and pharmacy benefits manager raised its profit forecast for the year following a strong third quarter. Mondelez International rose 2% after the maker of Oreo cookies reported solid third-quarter financial results.
Investors are looking ahead to the latest statement from the Federal Reserve. The central bank will update Wall Street on its plans to begin paring its $120 billion in monthly bond purchases that helped keep long-term loan rates low to encourage borrowing and spending. Investors will also be listening for any comments on longer-term plans to eventually raise benchmark interest rates.
The Fed's latest statement comes amid persistent rising inflation that has cut into corporate operations and raised prices on raw materials. It is also making finished goods more expensive, raising concerns about whether consumers will cut back on spending as prices rise.
The central bank and investors have also been closely monitoring the recovery in the employment market, which has been lagging the broader economic recovery. The Labor Department will release its jobs report for October on Friday.