Stocks slipped lower on Tuesday as market participants awaited clues on when the Federal Reserve may reduce its stimulus efforts.
The Standard Poor’s 500-stock index, the Dow Jones industrial average and the Nasdaq composite were all about 0.8 percent lower in afternoon trading.
If the Dow ends the session higher, it would be the 21st Tuesday for the Dow to gain, the longest winning streak for any day of the week since 1900. But that streak appeared in jeopardy.
Intraday swings have increased in the last week as concerns have risen that the Fed may reduce its bond-buying program sooner than expected.
Many investors are also likely to hold off big bets until the nonfarm payrolls report, to be released on Friday, provides an update on the employment situation. The market will also focus on the Fed’s Beige Book of economic conditions in the United States, to be released on Wednesday.
Three Fed officials — Sarah Bloom Raskin, a Federal Reserve governor; Esther L. George, president of the Federal Reserve Bank of Kansas City; and Richard W. Fisher, president of the Federal Reserve Bank of Dallas — are scheduled to deliver speeches Tuesday.
European stocks ended the session slightly higher in thin trading, with the FTSE Eurofirst 300 index gaining 0.3 percent.
Overnight, Japan’s Nikkei climbed more than 2 percent, its biggest one-day rise in three weeks, as currency swings amplified moves ahead of Wednesday’s announcement from Prime Minister Shinzo Abe on the third leg of his $1.4 trillion “Abenomics” stimulus strategy.
The latest changes are likely to center on economic reforms but sources told Reuters the government could also include steps urging Japan’s public pension funds to increase their investment in equities and overseas.
Wall Street stocks rallied late on Monday, after disappointing factory data and comments from the president of the Federal Reserve Bank of Atlanta, Dennis Lockhart, who told Bloomberg Television that the central bank is committed to its record stimulus program.
In corporate news, Zynga, the online game company, announced its biggest round of layoffs and warned of weak bookings for the current quarter. Its shares rose 0.6 percent.
United States regulators proposed designating American International Group, Prudential Financial and GE Capital for heightened oversight in a long-anticipated move aimed at cracking down on risks to markets.
FedEx said on Monday it would permanently retire or will hasten the retirement of 86 aircraft and more than 300 engines as the package delivery company modernizes its fleet. Its shares were 0.3 percent higher.
Article source: http://www.nytimes.com/2013/06/05/business/daily-stock-market-activity.html?partner=rss&emc=rss