MARKET SNAPSHOT: U.S. Stocks Edge Lower; S&P 500 Retreats From Record

By Anora Mahmudova, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks edged lower on Wednesday as investors assessed a larger-than-expected jump in wholesale prices and mixed earnings reports from Macy's Inc., Deere & Co. and Plug Power Inc.

Wholesale prices jumped 0.6% in April, the largest increase since the autumn of 2012. Two months of sharp rises in prices paid by producers suggest that the era of low inflation in the U.S. may be ending.

The S&P 500 (SPX) was 3 points, or 0.2%, lower at 1,894.02. The Dow Jones Industrial Average (DJI) shed 44 points, or 0.3%, to 16,670.30. The Nasdaq Composite (RIXF) fell 7 points, or 0.2%, to 4,122.23.

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"Markets are taking a pause after scaling record levels in the past few days," says Frank Fantozzi, chief executive officer at Planned Financial Services, a Cleveland, Ohio-based independent wealth manager.

"As the economy keeps improving and the Fed keeps interest rates low, stocks are likely to go higher in 2014, with some volatility along the way," he added.

The only economic report on the docket was a report on U.S. wholesale costs. Prices paid by producers jumped in April by most since the autumn of 2012, rising sharply for the second straight month. The rise suggests that price pressures might be building a bit after an extended period of extremely low inflation.

The producer-price index jumped a seasonally adjusted 0.6% last month, following a revised 0.5% increase in March, the Labor Department said Wednesday. Economists polled by MarketWatch had expected a 0.2% increase.

Macy's gains on earnings beat, Plug Power falls

Macy's (M) shares rose 1.7% after the company reported first-quarter earnings that beat expectations, as sales improved in April after severe weather hurt business between January and March.

Shares of Deere & Co. (DE) fell 0.8% after the tractor maker reported its profit fell 9.5% as sales of equipment fell. It also predicted a steeper-than-expected decline in equipment sales for the full fiscal year.

Shares of Plug Power Inc. (PLUGD) reversed a late-session gain on results and was down 7.8% in early morning trade.

Google Inc. (GOOG) and WellPoint Inc. (WLP) are among the companies holding annual general meetings on Wednesday.

After the close of regular trading, Dow industrials component Cisco Systems Inc. (CSCO) is expected to report a slightly lower profit and lower revenue, with the outlook a key focus for analysts and investors. Cisco: Revenue to fall again, analysts say

Shares of Take-Two Interactive Software Inc. (TTWO) lost 3.2% after the videogame publisher projected a wider-than-expected first-quarter adjusted loss.

Shares of Fossil Group Inc. (FOSL) dropped 7.7% after the watchmaker provided disappointing projected earnings for the second quarter. Read: Macy's, Deere, Cisco are stocks to watch

European stocks weaker, gold gains

In overseas markets, European stocks traded weaker. The release of the Bank of England's May inflation report triggered losses for the British pound across the board.

In Asia, the Hong Kong Hang Seng Index jumped 1% after China's central bank told China's top bankers to cut mortgage rates and take other actions to support the market. Gains in Hong Kong were led by property firms. China property crash: Economists debate outlook

In other markets, crude-oil for June delivery (CLM4) rose 59 cents to $102.29 a barrel, while gold for June delivery (GCM4) gained 0.9% to $1,306.8 an ounce.

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