US stocks have erased early losses to close mixed after a fresh sign that the US Federal Reserve is leaning toward new economic stimulus efforts.
The Dow Jones Industrial Average finished down 30.82 points (0.23 per cent) at 13,172.76, pulled down in part by Hewlett-Packard’s 3.7 per cent loss.
The broader S&P 500 index eked out a gain of 0.32 (0.02 per cent) to 1,413.49, while the tech-rich Nasdaq gained 6.41 (0.21 per cent) to 3,073.67.
After heading lower in early trade, the stocks got a bounce on the release of the minutes of the Fed’s July 31-August 1 meeting, which showed policy makers leaning toward more stimulus action “fairly soon” unless economic data turns around.
“Members of the committee agreed that additional easing could provide support for economic recovery by further depressing longer-term interest rates,” said Briefing.com.
Hewlett-Packard led the Dow 30 blue chips lower after turning in an $US8.9 billion ($A8.52 billion) loss for the fiscal third quarter due mainly to goodwill writedowns, compared to a $US1.9 billion ($A1.82 billion) gain a year ago. It lowered its expectations for the rest of the year.
Shares of HP rival Dell sank 5.4 per cent after it reported quarterly earnings that missed analyst expectations and cut full-year forecasts as PC sales continue to slide.
Home builder Toll Brothers reported a 46 per cent increase in earnings for its fiscal third quarter, another encouraging indicator for the housing sector. Toll Brothers shares were up 3.8 per cent.
EBay shares gained 2.5 per cent while Apple shares added nearly 2.0 per cent.
The news from the Fed sent US bond prices sharply higher. The yield on the 10-year Treasury fell to 1.72 per cent from 1.81 per cent Tuesday, while the 30-year fell to 2.83 per cent from 2.93 per cent. Bond yields move inversely to prices.
