MARKET SNAPSHOT: U.S. Stocks Giving Back Some Fed-fueled Gains

By Victor Reklaitis and Sara Sjolin, MarketWatch

Apple advances in debut as Dow component

NEW YORK (MarketWatch) -- U.S. stocks pulled back Thursday, taking a breather after the prior day's Federal Reserve-inspired rally that sent the S&P 500 to its highest close in two weeks.

The S&P 500 (SPX) fell 8 points, or 0.4%, to 2,091, while the Dow Jones Industrial Average (DJI) dropped 92 points, or 0.5%, to 17,982. The blue-chip gauge has been down by more than 100 points in the early going.

The Nasdaq Composite (RIXF) was roughly unchanged at 4,982.

The modest declines followed a volatile session on Wednesday, when the indexes erased early losses to close markedly higher, with the Dow up 227 points. The Fed, as expected, dropped its pledge to remain "patient" (http://www.marketwatch.com/story/fed-takes-step-to-rate-hike-but-scales-back-intended-pace-2015-03-18) about raising rates, but signaled a slower increase in interest rates than it foresaw just a few months ago.

"So in the end, while the Fed remains data dependent, the data now seems to be saying 'it depends,'" said Sam Stovall, equity strategist at S&P Capital IQ, in a note. "We maintain our year-end S&P 500 target of 2250 as well as our expectation for elevated market volatility."

Thursday's economic news: Before the market's open, a report on jobless claims came in a bit weaker than expected, and stock futures maintained their losses after its release. Jobless claims for the week ended March 14 came in at 291,000 (http://www.marketwatch.com/story/us-jobless-claims-barely-changed-at-291000-2015-03-19), while economists polled by MarketWatch had expected 290,000. S

A new reading on the Philadelphia Fed's manufacturing index is expected at 10.am. Eastern, with economists predicting a rebound to 8.0 in March. A fresh figure for leading indicators is also due at 10 a.m., and Federal Reserve Governor Daniel Tarullo testifies before the Committee on Banking, Housing, and Urban Affairs at that time. Additionally, Dallas Fed President Richard Fisher retires on Thursday.

Stocks to watch:Apple Inc.(AAPL) is in the spotlight as it debuts as a Dow Jones Industrial Average component. Shares were up 0.2% in the early going. See: What being added to the Dow will do to Apple's stock (http://www.marketwatch.com/story/will-2015-be-apples-blue-chip-debut-2014-12-15)

Home builder Lennar Corp.(LEN) was one of the biggest gainers among S&P 500 stocks after the home builder reported earnings and revenue that beat expectations (http://www.marketwatch.com/story/lennar-profit-revenue-beat-views-sees-improving-housing-market-2015-03-19).

Read more about Thursday's jumpiest stocks in the Movers & Shakers column (http://www.marketwatch.com/story/apple-to-debut-as-dow-component-nike-earnings-in-focus-2015-03-19)

Other markets: The dollar recouped a big chunk of its post-Fed losses (http://www.marketwatch.com/storyno-meta-for-guid), with the ICE dollar index (DXY) showing a sizable gain. The greenback had dropped against its rivals after Wednesday's Fed announcement, sliding to its lowest level (http://www.marketwatch.com/story/dollar-trapped-in-a-tight-range-ahead-of-fomc-outcome-2015-03-18) against the euro in eight days.

The euro (EURUSD) was moving sharply lower Thursday, as attention reverted back to negotiations between Greece and its creditors, with a meeting on the sidelines of this week's eurozone summit. Read: Merkel plays down hopes for Greek deal at European summit (http://www.marketwatch.com/story/merkel-downplays-hopes-for-greek-deal-at-european-summit-2015-03-19).

European stock markets were mostly higher, keying off the Fed optimism. The Fed statement came out after markets in Europe closed, making Thursday's session the first chance for that region's investors to react to the news. The U.K.'s FTSE 100 (http://www.marketwatch.com/storyno-meta-for-guid) was flirting with a record closing high.

Asian markets closed mixed, with stocks in Shanghai extending a seven-day winning streak (http://www.marketwatch.com/story/chinese-stocks-advance-further-after-us-rally-2015-03-19). Gold rallied (http://www.marketwatch.com/story/gold-rallies-as-fed-signals-slow-pace-of-rate-hikes-2015-03-19), while crude oil prices slumped (http://www.marketwatch.com/storyno-meta-for-guid).

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