MARKET SNAPSHOT: U.S. Stocks Reverse Losses; Apple Rallies

By Anora Mahmudova and Barbara Kollmeyer, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks reversed early morning losses and edged higher Wednesday led by gains in the tech and health-care sectors.

Prices increases were tepid, however, as investors fretted about the timing and pace of interest-rate hikes from the Federal Reserve amid rising Treasury yields.

The S&P 500 (SPX) was 5 points, or 0.2%, higher at 1,993.55. The Dow Jones Industrial Average (DJI) added 50 points, or 0.3%, to 17,062.61. The Nasdaq Composite (RIXF) gained 26 points, or 0.6%, to 4,578.48.

Fed triggers jitters: The yield on the 10-year Treasurys rose 3 basis points to 2.53%, rising for the fifth consecutive session. Quincy Krosby, market strategist at Prudential Financial, said that in the absence of economic data, investors are remaining cautious until the next FOMC meeting.

"Markets are sensitive to the end of QE and will be nervous until the crucial FOMC meeting and press conference next week. It is not unusual to see weakness after big gains last month," Krosby said.

"There is also a case for a strong IPO supply, including Alibaba. Managers tend to sell stocks in their portfolios to raise cash for new stocks," she added.

Stocks to watch: Apple Inc. (AAPL) unveiled the highly anticipated iPhone 6, iPhone 6 Plus and Apple Watch plus a mobile payments system on Tuesday. Goldman Sachs called the launch "impressive" and lifted its target for the stock price. Read more: Why now may be the best time to own Apple.

While Apple is basking in the sun, some are being shunned because of Apple's decisions: GT Advanced Technologies Inc. (GTAT) shares slid 14% after Apple said it won't move toward broad use of sapphire cover screens, which GT provides.

eBay Inc. (EBAY) shares slid 3.2% as Analysts suggest it will face greater competition for its PayPal mobile payment service following the announcement of Apple Pay.

Land's End Inc. (LE) shares rallied 12% after the clothing retailer posted better-than-expected sales and profit in its fiscal second quarter.

Krispy Kreme Doughnuts (KKD) skidded 4.6% after the doughnut chain posted stronger sales, but adjusted profit missed forecasts. For more on today's movers, read our Movers & Shakers column.

Other markets: European markets closed mostly lower. Asian markets finished lower, with the exception of a small rise for the Nikkei 225 index . As investors backed away from stocks, gold prices(GCZ4) ticked up and the dollar continued to climb, hitting another nearly six-year high against the yen (USDJPY). Oil prices fell.

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