MARKET SNAPSHOT: U.S. Stocks In Retreat After Fed Minutes

By Kate Gibson, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks on Wednesday fell the most in two weeks as investors considered varied views from Federal Reserve officials on the longevity of the central bank's asset-purchase program.

The Dow Jones Industrial Average (DJI) shed 91.21 points, or 0.7%, to 13,944.4, with Caterpillar Inc. (CAT) shares among those hit as the manufacturer of construction and mining equipment reported global sales fell in the first quarter.

Retreating some from highs last reached in October 2007, the S&P 500 index (SPX) shed 16.55 points, or 1.1%, to 1,514.39, with materials the heaviest weight among its sectors.

The S&P 500 is up 6.2% so far this year, lifted by the Fed's easing policy, better-than-anticipated earnings and after politicians managed to reach a budget deal.

Minutes from the Federal Open Market Committee's January meeting released Wednesday had some Fed members expressing concern about the $85 billion a month in asset purchases.

"As we found out last month, we don't have a uniform voice coming from the Fed," said Art Hogan, market strategist at Lazard Capital Markets.

Interest rates could remain exceptionally low "well into 2014, but how much we spend on purchases could be scaled back at any time," said Hogan of the Fed's monthly spending on assets.

However, potential changes to the Fed's monetary policy are "less bothersome than some things on the horizon," said Hogan, listing the March 1 deadline for massive cuts in government spending, known as sequestration, and the outcome of Italian elections.

After closing at a 12-year high Tuesday, the Nasdaq Composite (RIXF) on Wednesday slipped 40.36 points, or 1.3%, to 3,173.21.

Gold prices fell 1.6%, with the futures contract for February delivery (GCG3) losing $26 to $1,577.60 an ounce.

Among individual stock moves, Boeing Co. (BA) rose 0.4% a day after engineers approved the plane maker's contract offer, deflating a labor dispute.

Apple Inc. (AAPL) fell 2.4% after supplier Foxconn Technology Group froze hiring at its biggest factory in Shenzhen.

Toll Brothers Inc. (TOL) shed 7.9% after the luxury-home builder reported earnings beneath expectations.

"Weakness in gold and Apple has been the norm of late but when you throw in the home builders and a couple of suppliers into the mix, you get a broad decline," remarked Elliot Spar, market strategist at Stifel Nicolaus & Company Inc.

For every stock on the rise nearly three fell on the New York Stock Exchange, where 496 million shares traded as of 3:25 p.m. Eastern. Composite volume approached 3.2 billion.

Figures from the Commerce Department had builders breaking ground in January on the most homes in more than four years and permits for construction ahead climbing. Housing starts fell to a 890,000 rate, below expectations.

The rise in permits suggests "the January decline in starts will be temporary, and as the year progresses, housing starts will continue to push higher," said Dan Greenhaus, chief global strategist at BTIG LLC.

A separate report from the Labor Department had the producer-price index rising 0.2% in January after a 0.3% decline the month before.

Office Depot Inc. (ODP) and OfficeMax Inc. (OMX)(OMX) will join in a $1.2 billion all-stock deal, the companies said Wednesday, confirming an accord mistakenly announced ahead of its completion.

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