U.S. stocks slump after Fed minutes FOMC minute

U.S. stocks slump after Fed minutes

FOMC minutes fuel worst session in more than two weeks
NEW YORK (MarketWatch) — U.S. stocks fell sharply on Wednesday, retreating from multiyear highs, after minutes from the Federal Reserve’s last meeting illustrated differing views over continued stimulus.

“If the Fed is talking about ending its asset-purchase program, it’s because they view the economic landscape as better,” said Dan Greenhaus, chief global strategist at BTIG LLC.

But some correction from an extended rally that has the S&P 500 index (SNC:SPX)  up 6% so far this year “is hardly the worst idea, especially in front of the coming sequester and budget debate,” he added.

The Dow Jones Industrial Average (DJI JIA)  shed 108.13 points, or 0.8%, to 13,927.54, with Caterpillar Inc. (NYSE:CAT)  shares among those hit as the manufacturer of construction and mining equipment reported global sales fell in the first quarter.
Retreating from highs last reached in October 2007, the S&P 500 index (SNC:SPX)  shed 18.99 points, or 1.2%, to 1,511.95, with materials the heaviest weight among its 10 sectors.

The market’s rise has come along with the Fed’s easing policy, better-than-anticipated earnings and a short-term U.S. fiscal deal reached in early January.

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.

“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.

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 upcoming Italian elections.
After closing at a 12-year high Tuesday, the Nasdaq Composite (NASDAQ:COMP)  on Wednesday slipped 49.19 points, or 1.5%, to 3,164.41.

Gold prices fell 1.6% to end below $1,600 an ounce, pressured by the FOMC minutes and strength in the dollar. http://www.marketwatch.com/story/us-stock-ind...beforebell