U.S. stocks extended losses, sending the Standard & Poor’s 500 Index below its lowest closing level since November, after the Federal Reserve stuck to its plan for a gradual withdrawal of stimulus.
The S&P 500 lost 1.2% to 1,771.86. The Dow Jones Industrial Average dropped 202.90 points, or 1.3%, to 15,725.66 today.
Stocks fell to their lows of the session as policy makers pressed on with a reduction in the purchases intended to speed a recovery from the worst recession since the Great Depression, even after payroll growth slowed in December and amid a rout in emerging-market currencies. Some officials have expressed concern that the Fed’s record $4.1 trillion balance sheet could help create asset-price bubbles.
“Labor market indicators were mixed but on balance showed further improvement,” the Federal Open Market Committee said today in a statement following a two-day meeting in Washington that was the last for Chairman Ben Bernanke, who will be succeeded by Vice Chairman Janet Yellen on Feb. 1. “The unemployment rate declined but remains elevated.”
Facebook Inc., Boeing and Dow Chemical are among the 25 S&P 500 companies reporting earnings today.
About 77% of the S&P 500 companies that have posted earnings this season beat analysts’ projections. Profit at S&P 500 companies probably rose 6.6% in the fourth quarter of 2013, and sales increased 2.6%, analysts’ estimates show.
Nine of the 10 main groups in the S&P 500 retreated today as producers of consumer staples companies fell 1.7% to pace losses. Raw-materials suppliers advanced 0.8% for the only gain as DuPont Co. rallied 2%, the most in the Dow.
Yahoo slumped 8.4% as its sales forecast signaled slowing growth.
Boeing Co. retreated 6.1% and AT&T lost 1% after forecasts trailed some analysts’ estimates.
Dow Chemical (DOW) Co. jumped 3.9% after stepping up its dividend and share-buyback plan.
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