It was the longest winning stretch for the Dow since February 2011,
but that was one of the few bright spots on an otherwise glum day in
the stock market.
The Standard & Poor's 500 edged down 1.67 points to 1,394.28. The
Nasdaq composite inched up 0.85 point to end at 3,040.73. The Nasdaq
closed above 3,000 on Tuesday for the first time since December
2000.
Other market indicators were weak. The Russell 2000 index of
small-company stocks fell 1 percent. Only two of the 10 industry
groups in the S&P 500 rose, technology and banks. Falling stocks
outnumbered rising ones more than 2-to-1 on the New York Stock
Exchange.
American Express led the Dow higher with a 3.5 percent advance. The
credit card company said it would increase its dividend and buy back
up to $5 billion of its own stock after passing the Federal
Reserve's latest "stress test."
Citigroup fell 3.4 percent after regulators ruled that the bank
couldn't afford to raise its dividend. Citi was one of just four
major financial companies that didn't pass the Fed's latest test of
how banks would hold up during an extreme economic downturn.
On Tuesday, a powerful rally in bank stocks pushed the Dow to its
highest close since the last day of 2007. The Federal Reserve said
15 of the 19 major banks it surveyed passed its test.
Other banks that got passing grades from the Fed mostly rose.
Regions Financial rose 6.9 percent to $6.17 after the bank said it
would sell $900 million in stock to repay some of the money it
received as part of the 2008 bank bailout. Bank of America rose 4.1
percent to $8.84 and Zions Bancorporation jumped 10.5 percent to
$21.58, the most of any stock in the S&P 500 index.
MetLife, an insurance company, also failed to pass the Fed's stress
test. The stock slid 5.8 percent to $37.16, the most in the S&P 500.
The yield on the 10-year Treasury note rose sharply, to 2.27 percent
from 2.11 percent late Tuesday. The benchmark yield has risen for
five days straight and is at the highest level since October. That's
a sign that investors believe the economy is improving and that
they're more willing to hold higher-risk assets like stocks.
[to top of second column] |
Gold plunged $51 to $1,643 an ounce as the dollar surged against
other currencies. Gold often falls when the dollar rises because
it's seen as an alternative to holding cash.
European markets were mostly higher. Germany's DAX rose 1.2 percent.
France's benchmark index rose 0.4 percent and Spain's edged up 0.2
percent.
The Fed was planning to wait until Thursday to release the results
of its stress tests, which determine which financial companies are
healthy enough to raise their dividends. After JPMorgan Chase
surprised the market with an announcement Tuesday that it would
raise its dividend and buy back stock, the Fed released the results
early.
Apple rose for a sixth straight day, gaining $21.48, or 3.8 percent,
to $589.58. The stock started the year at $405. The company
announced the latest version of its blockbuster tablet computer, the
iPad, last week.
Southwest Airlines fell 2.7 percent to $8.18 a day after the
low-cost carrier said it didn't expect to earn a profit in the first
quarter because of higher fuel costs. The airline also said ticket
bookings for spring travel weakened in late February.
Cliffs Natural Resources jumped 7 percent to $69.50. The
Cleveland-based mining company said late Tuesday it was bumping its
dividend to 62.6 cents, from 28 cents.
[Associated
Pressldnauthor
Copyright 2012 The Associated
Press. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
|