Earlier losses at the S&P 500 (INDEXSP:.INX ) were wiped out after it closed flat following hints of a new round of stimulus may be implemented by the central bank basing on the minutes of the most recent meeting of the Federal Reserve.
The minutes revealed that unless a significant improvement is shown by the economy a new round of stimulus may be implemented ‘fairly soon’. It remains uncertain if Ben Bernanke, the Fed Chairman, will decide that nothing should e done particularly after recent developments in the economy, which were noted after the meeting.
According to Quincy Krosby, a Prudential Financial market strategist, it remains to be seen if the latest developments will be considerable enough for the chairman to decide that another set of monetary stimulus is not necessary.
Anxiety about the meetings in Greece and weak export from Japan has caused stocks to stay negative for a good part of the session. Following the announcement of Dell (NASDAQ:DELL) that the second half may not be easy, shares of the company fell by 5.35 percent.
Shares of Hewlett Packard (NYSE:HPQ) also went down by 3.66 percent following reports of a third quarter loss for the company. Tuesday saw the S&P 500 reaching its peak level in over four years, however this quickly went down and closed on a negative. But short-term support has allowed the S&P to exceed the 1,400 levels as it closed Wednesday at 1,413.49.
The market may be influenced with an upcoming meeting of economists and central bankers before September along with the September 6 meeting of the European Central Bank. The upcoming constitutional vote of Germany that will ratify the rescue fund of the euro zone will be another event to look out for.
The Dow Jones (INDEXDJX:.DJI ) also declined by 0.23 percent as it closed at 13,172.76 even as the Nasdaq (INDEXNASDAQ:.IXIC ) closed higher by 0.21 percent at 3,073,67
July has seen Japanese exports to China and Europe drop considerably, which increased concerns on global demand following a number of negative trade date from the main export economies in Asia. Markets have also been hesitant on whether Antonis Samaras, the Greek prime minister, was able to convince the other leaders in Europe that more time should be given to Greece in meeting deficit cut targets.
An increase in quarterly profit has allowed shares of Toll Brothers (NYSE:TOL) to increase by 3.77 percent. Small improvements in labor as well as low interest rates enhanced the home purchase situation as re-sales for US homes increased in July. Sunrise Senior Living (NYSE:SRZ) shares also increased by 59.69 percent as it closed at $14.26 even as Health Care REIT (NYSE:HCN) shares declined by 2.69 percent as it closed at $58.14. Losers outnumbered gainers at the NYSE as well as at the Nasdaq.