MARKET SNAPSHOT: S&P 500 Tries For Record Close, Recovers From Post-Fed Dip

By Victor Reklaitis and Barbara Kollmeyer, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks stepped higher on Wednesday afternoon, shaking off a dip that came after Federal Reserve minutes indicated that policy makers talked at their last meeting about hiking interest rates sooner than anticipated.

The S&P 500 (SPX) rose by 6 points, or 0.3%, to 1,987. The benchmark turned negative shortly after the minutes came out at 2 p.m. Eastern, but it has bounced back and briefly traded above its July 24 record close of 1,987.98.

The Dow Jones Industrial Average(DJI) tacked on 67 points, or 0.4%, to 16,987, while the Nadaq Composite(RIXF) gained 3 points, or 0.1%, to 4,531.

Fed officials debated at their July meeting whether to move faster than expected to start raising interest rates in light of an improving job market and rising inflation, said a Wall Street Journal report on the minutes. But the officials decided they needed more evidence before concluding that was the right approach. (Read more: Fed more divided on U:S: labor market gains http://www.marketwatch.com/story/fed-more-divided-on-us-labor-market-gains-2014-08-20.)

"The center of gravity is moving gradually to the hawkish side," said Jerry Webman chief economist at OppenheimerFunds. The stock market "likes accommodation," so it gave up a little ground after the minutes, he told MarketWatch. But there wasn't a more extreme negative reaction because the minutes don't give a reason to get pessimistic about corporate earnings, which are the market's main driver, he added.

The minutes didn't contain "anything shocking," and there wasn't a big drop by stocks, so the market resumed its two-week uptrend, said Joe Bell, senior equity analyst for Schaeffer's Investment Research.

While investors are reading the minutes for clues about the Fed's 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

Staples Inc.(SPLS) helped keep a lid on the S&P 500's gains, becoming the index's worst performer of the day after the retailer reported a drop in quarterly profit and sales. Apple Inc.(AAPL) gained 0.4% to $100.90 and hit an intraday split-adjusted record of $101.09.

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

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 1.7%, while Target Corp. (TGT) was up 1.3%. Each retailer had dropped earlier Wednesday after cutting its 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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