Early Rise in Stocks Fades to Mixed 06/23 11:29
A morning gain on Wall Street was fading away at midday Wednesday, leaving
major indexes mixed.
(AP) -- A morning gain on Wall Street was fading away at midday Wednesday,
leaving major indexes mixed. Investors are still trying to parse emerging signs
of inflation and judge whether they will be transitory, as the Federal Reserve
thinks they will.
The S&P 500 remains slightly below the record high it set more than a week
ago. The benchmark index has recovered all its losses from last week, when the
Fed's comments on eventually tapering its support for the economy raised
anxiety levels in the markets.
The S&P 500 was little changed as of 11:44 a.m. Eastern time. The Dow Jones
Industrial Average fell 9 points, or less than 0.1%, to 33,941 points and the
Nasdaq rose 0.2%.
Exxon Mobil, Chevron and other energy companies were among the biggest
gainers helping to push the market higher as crude oil prices rose 1%. Cruise
lines, hotels and casinos were among some of the companies that rely on direct
consumer spending also making solid gains.
There is still a lot of churn within the broader market. Slightly more
stocks were rising than falling within the S&P 500. Health care companies were
among the sectors sliding lower.
On Tuesday, Fed Chair Jerome Powell said the central bank still believes the
current increases in inflation will prove to be temporary. Prices for
commodities, cars, and a range of other goods have been rising as demand
outpaces supply amid a quickly recovering economy. The central bank has said
that will eventually level off and ease rising inflation.
Investors are concerned that if the Fed is wrong and higher inflation is
longer lasting, the central bank will then have to ease up on its support for
the economy, which include slowing its $120 billion of monthly bond purchases,
which are helping to keep mortgages and other longer-term borrowing cheap.
Investors will get another piece of data on Friday to gauge rising inflation
when the Commerce Department releases its personal income and spending report
Bond yields edged higher. The yield on the 10-year Treasury rose to 1.49%
from 1.47% late Tuesday.
Homebuilders slipped following a report that showed sales of new homes in
May fell short of economists forecasts. Lennar fell 1.4% and D.R. Horton fell
European markets were mostly lower. The DAX in Germany slipped 0.9%, the CAC
40 in France fell 0.8%. The FTSE 100 in London rose 0.1%. Asian markets were