MARKET SNAPSHOT: U.S. Stocks: S&P Turns Flat After Fed Minutes

By Victor Reklaitis and Barbara Kollmeyer, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks erased modest gains on Wednesday afternoon as Federal Reserve minutes indicated policy makers talked at their last meeting about whether to hike interest rates sooner than anticipated.

The S&P 500 (SPX) was roughly flat, down 1 point or less than 0.1% to 1,980. The benchmark earlier Wednesday had climbed to just below 1986, approaching its July 24 record close at 1,987.98.

The Dow Jones Industrial Average(DJI) tacked on 7 points, or less than 0.1%, to 16,927, while the Nadaq Composite(RIXF) lost 9 points, or 0.2%, to 4,518.

Staples Inc.(SPLS) helped keep a lid on the S&P 500, becoming the index's worst performer of the day after the retailer reported a drop in quarterly profit and sales. Apple Inc.(AAPL) gained 0.2% to $100.76 and hit an intraday split-adjusted record of $101.09.

Federal Reserve officials debated at their July meeting whether to move sooner than expected to start raising interest rates in light of an improving job market and rising inflation, said a Wall Street Journal report. But the officials decided they needed more evidence before concluding that was the right approach.

In the minutes, the Fed said policy makers agreed to use interest rates on excess reserves as its main tool to set the federal funds rate, and the bank plans to target a range instead of a precise number when it eventually raises rates.

While investors may focus on clues about the Fed's exit strategy, markets may also quickly move past them to focus on Fed Chairwoman Janet Yellen's speech at 10 a.m. Eastern Friday in Jackson Hole, Wyo. Read: Yellen to stress patience on rates at Jackson Hole

What strategists are saying: The S&P 500 could face resistance in the short term as the benchmark nears its prior record close, said Joe Bell, senior equity analyst for Schaeffer's Investment Research. Prior highs "generally act as some sort of speed bump," he told MarketWatch.

Investors should keep buying the dips in this market, because it's just showing signs of a maturing bull phase, rather than "warning of an impending market turnaround," said Citi strategists in a recent note.

Movers & shakers: Hertz Global Holdings Inc.(HTZ) shares slumped 10% after the rental-car company said it expects to be "well below the low end" of guidance. Also read: It's 'difficult to find any positives' in Hertz warning

Apple's jump to an intraday record comes after the tech giant nailed an all-time split-adjusted closing high of $100.53 on Tuesday. Read: 7 reasons why this product cycle will be different for Apple

Lowe's Cos.(LOW) rose 1.1%, while Target Corp. (TGT) was up 1.66%. Each retailer had dropped earlier Wednesday in the wake of a lowered guidance. (Read more about today's jumpiest stocks in the Movers & Shakers column http://www.marketwatch.com/story/target-lowes-petsmart-report-earnings-wednesday-2014-08-19.)

Other markets: The Stoxx Europe 600 closed lower, halting a two-day rally. In Asia, stocks finished with moderate gains, outside a small loss for the Shanghai Composite .

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