Dow Jones Industrial Average retreated slightly on Wednesday after refreshing this year's high in the previous session. A mixed private sector job report and the Fed's assessment that economy is improving failed to bolster the market.
At Wednesday's close, the Dow Jones lost'.90, or 0.18 percent, to 10,452.68. Broader indexes went slightly higher. The Standard &Poor's 500 index inched up 0.38, or 0.03 percent, to 1,109.24, and the Nasdaq rose 9.22, or 0.42 percent, to 2,185.03.
Investors have been waiting for the Fed's latest version of Beige Book, a monthly report tracking U.S. regional economic activity. The Fed released on Wednesday the most upbeat assessment on the economy since recession gripped the country two years ago.
According to the report, U.S. economic recovery gained traction in late fall as consumer spending improved slightly and factories bumped up production.
The report shows that conditions have generally improved since the last report in late October. Eight of the Fed's 12 regions surveyed reported some pickup in activity or improved conditions, the Fed said. The survey also found that inflation remains under control, which enables the Fed to hold rates at record-lows.
Consumer spending strengthened in November as holiday shopping season started and some retailers are a bit more optimistic about sales outlook, the Fed said. The survey also found that manufacturing conditions generally showed some improvements.
Meanwhile, sales and construction in housing market improved across the country but commercial real estate conditions continued to deteriorate, the Fed report said.
While labor market remains weak, there were some silver linings in the survey findings. Some businesses in Boston and St. Louis region started to expand and hire more people.
In a separate report, the ADP National Employment Report showed 169,000 private sector jobs were lost in November, worse than the 160,000 cuts economists had expected, but fewer than the number lost in October.
The eighth straight decline in job losses provides further evidence the country's economy is recovering, though at a slow pace.
The ADP report is usually taken as a good indicator of a broader picture of the job market. Investors will embrace the government's monthly employment report on Friday. Economists are expecting the unemployment rate to remain flat at 10.2 percent in November.
Financial shares slid after JP Morgan Chase & Co. slumped on the concern that changes in derivatives rules will reduce earnings.
The House Financial Services Committee voted 31-27 on Wednesday for a bill creating a council of regulators to monitor systemic risk, shifting the cost of a failure to the financial industry and giving regulators the power to break up healthy firms.
Bank of America Corp. lost 24 cents, or 1.51 percent, to 15.65 dollars.
Dollar strengthened against major currencies, which also cooled the market on Wednesday. Oil gave up 2.3 percent to settle at 76.60 U.S. dollars a barrel in New York trading, as a rising dollar limited crude's appeal as an alternative investment.
Energy sector staged the steepest decline among 10 groups in the S&P 500. Both Exxon Mobil and Chevron shares fell.
Conoco Phillips, the third-largest U.S. oil company, said on Wednesday it plans to slash its 2010 capital spending by 10 percent as it tries to shore up cash amid plunging profits. Its shares fell 42 cents, or 0.80 percent, to 51.84 dollars. - 30443
At Wednesday's close, the Dow Jones lost'.90, or 0.18 percent, to 10,452.68. Broader indexes went slightly higher. The Standard &Poor's 500 index inched up 0.38, or 0.03 percent, to 1,109.24, and the Nasdaq rose 9.22, or 0.42 percent, to 2,185.03.
Investors have been waiting for the Fed's latest version of Beige Book, a monthly report tracking U.S. regional economic activity. The Fed released on Wednesday the most upbeat assessment on the economy since recession gripped the country two years ago.
According to the report, U.S. economic recovery gained traction in late fall as consumer spending improved slightly and factories bumped up production.
The report shows that conditions have generally improved since the last report in late October. Eight of the Fed's 12 regions surveyed reported some pickup in activity or improved conditions, the Fed said. The survey also found that inflation remains under control, which enables the Fed to hold rates at record-lows.
Consumer spending strengthened in November as holiday shopping season started and some retailers are a bit more optimistic about sales outlook, the Fed said. The survey also found that manufacturing conditions generally showed some improvements.
Meanwhile, sales and construction in housing market improved across the country but commercial real estate conditions continued to deteriorate, the Fed report said.
While labor market remains weak, there were some silver linings in the survey findings. Some businesses in Boston and St. Louis region started to expand and hire more people.
In a separate report, the ADP National Employment Report showed 169,000 private sector jobs were lost in November, worse than the 160,000 cuts economists had expected, but fewer than the number lost in October.
The eighth straight decline in job losses provides further evidence the country's economy is recovering, though at a slow pace.
The ADP report is usually taken as a good indicator of a broader picture of the job market. Investors will embrace the government's monthly employment report on Friday. Economists are expecting the unemployment rate to remain flat at 10.2 percent in November.
Financial shares slid after JP Morgan Chase & Co. slumped on the concern that changes in derivatives rules will reduce earnings.
The House Financial Services Committee voted 31-27 on Wednesday for a bill creating a council of regulators to monitor systemic risk, shifting the cost of a failure to the financial industry and giving regulators the power to break up healthy firms.
Bank of America Corp. lost 24 cents, or 1.51 percent, to 15.65 dollars.
Dollar strengthened against major currencies, which also cooled the market on Wednesday. Oil gave up 2.3 percent to settle at 76.60 U.S. dollars a barrel in New York trading, as a rising dollar limited crude's appeal as an alternative investment.
Energy sector staged the steepest decline among 10 groups in the S&P 500. Both Exxon Mobil and Chevron shares fell.
Conoco Phillips, the third-largest U.S. oil company, said on Wednesday it plans to slash its 2010 capital spending by 10 percent as it tries to shore up cash amid plunging profits. Its shares fell 42 cents, or 0.80 percent, to 51.84 dollars. - 30443
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