US stock indices were unchanged on Wednesday as investors waited for the Federal Reserve’s latest minutes to be released for insights into when the central bank might begin removing incentives.
The Dow Jones Industrial Average lost around 10 points after a 5-day winning streak on Tuesday. The S&P 500 and the Nasdaq Composite traded near the flatline.
The Federal Reserve is releasing its meeting minutes from its July meeting at 2 p.m. ET. Market participants will be looking for clues as to when the central bank might withdraw its monthly bond buying program.
Since that July meeting, there has been growing support within the Fed to announce a cut in September and begin in October. The 10-year government bond yield rose slightly to around 1.27% on the Wednesday before it was released.
Elsewhere, housing starts fell 7% in July to a seasonally adjusted annual rate of 1.534 million units, well below economists’ expectations.
“The stock market is long overdue for a correction. Covid cases continue to rise, darkening economic reopenings, consumer data has collapsed terrifyingly recently. … Several stocks no longer react positively to good earnings, inflation reports stay hot and the Federal Reserve is sinking. “Talk is everywhere,” said Jim Paulsen, chief investment strategist of the Leuthold Group.
CNBC Pro’s Stock Picks and Investment Trends:
Investors also waded through more earnings reports from major retailers on Tuesday.
Lowe’s shares rose more than 8% after last quarter earnings beat expectations, with higher home improvement sales.
Meanwhile, Target stock pulled back even after beating second-quarter earnings. The retailer’s profit and sales exceeded expectations, and the company raised its forecast for the second half of the year with a good start to back-to-school spending. Target stocks are up 44% this year through Tuesday, so some investors may take profits.