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

By Victor Reklaitis and Sara Sjolin, MarketWatch

Apple debuts as Dow component

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

The S&P 500 (SPX) fell 10.23 points, or 0.5%, to settle at 2,089.27, as oil prices dropped and energy stocks (XLE) helped lead the way lower. The Dow Jones Industrial Average (DJI) fell 117.16 points, or nearly 0.7%, to end at 17,959.03. The blue-chip gauge had been down by as much as 142 points.

The Nasdaq Composite (RIXF) resisted the negative trend, edging up by 9.55 points, or 0.2%, to close at 4,992.38. The tech-heavy index, which briefly traded above 5,000 on Thursday, has climbed for four straight sessions.

The S&P and Dow's modest declines followed a volatile session on Wednesday, when stocks erased early losses to finish markedly higher, with the Dow climbing 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. But Stovall also suggested his outfit's expectations for the year haven't changed much: "We maintain our year-end S&P 500 target of 2,250 as well as our expectation for elevated market volatility."

Thursday's economic news: Before the open, a weekly report on jobless claims was a bit weaker than expected, and stock futures maintained their losses after its release. First-time 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.

The stock market also had a muted reaction to a weaker-than-anticipated figure for the Philadelphia Fed's manufacturing index (http://www.marketwatch.com/story/philly-fed-index-inches-lower-to-52-in-march-2015-03-19).

Individual movers:Apple Inc.(AAPL) grabbed the spotlight as it made its debut as a Dow Jones Industrial Average component. Shares closed down 0.8% after rising at the open. See: How Apple's stock will influence the Dow (http://www.marketwatch.com/story/how-apples-stock-will-influence-the-dow-2015-03-19)

Transocean Ltd. (RIG) was the S&P 500's biggest decliner, sliding 7.1% after the offshore driller said it expects to book an after-tax charge of between $300 million and $325 million as it disposes of four rigs.

Nucor Corp.(NUE) was the S&P's second-biggest decliner, losing 6.4% after the steel giant issued a warning about its first-quarter results.

Lennar Corp.(LEN) closed lower by 0.1%, erasing an early advance that came 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 much 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.

What the dollar's wild post-Fed ride says about the markets (http://www.marketwatch.com/story/what-the-dollars-wild-post-fed-swings-say-about-the-market-2015-03-19).

The euro (EURUSD) moved 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 ended mostly higher (http://www.marketwatch.com/story/resource-stocks-push-european-markets-toward-record-high-2015-03-19), 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) finished at a record 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 settled higher (http://www.marketwatch.com/story/gold-rallies-as-fed-signals-slow-pace-of-rate-hikes-2015-03-19), while crude oil prices settled lower (http://www.marketwatch.com/storyno-meta-for-guid).

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