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

By Kate Gibson, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks slipped on Wednesday from multiyear highs as investors considered housing data and awaited any hints as to whether the Federal Reserve would change its monetary policy.

Minutes from the Federal Open Market Committee's January meeting come later in the session, and the primary focus will be the central bank's ongoing asset purchases, and "whether any progress was made on ending" it, said Dan Greenhaus, chief global strategist at BTIG LLC.

The S&P 500 index (SPX) is up 7% so far this year, lifted by the Fed's easing policy, better-than-anticipated earnings and after politicians managed to reach a budget deal.

"We have not seen a bear market for stocks or economic downtrend start, with the Fed maintaining an 'ultra-low' interest-rate policy or signaling that it will continue to stimulate the economy through easy monetary policy," offered Fred Dickson, chief investment strategist at Davidson Companies.

Retreating some from highs not reached since October 2007, the S&P 500 (SPX) shed 7.76 points, or 0.5%, to 1,523.23, with materials the heaviest weight among its sectors and utilities faring best.

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.

The Dow Jones Industrial Average (DJI) shed 21.74 points, or 0.2%, to 14,013.9, with Boeing Co. (BA) leading gains that included nine of its 30 components, a day after engineers approved the plane maker's contract offer, deflating a labor dispute.

Caterpillar Inc. (CAT) shares were among those hit as the manufacturer of construction and mining equipment reported global sales fell in the first quarter.

Toll Brothers Inc. (TOL) shed 5.8% after the luxury-home builder reported earnings beneath expectations.

After closing at a 12-year high Tuesday, the Nasdaq Composite (RIXF) on Wednesday slipped 21.47 points, or 0.7%, to 3,192.12.

Apple Inc. (AAPL) fell 1.8% after supplier Foxconn Technology Group froze hiring at its biggest factory in Shenzhen.

For every stock on the rise nearly two fell on the New York Stock Exchange, where 340 million shares traded as of 1:40 p.m. Eastern. Composite volume surpassed 2.2 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 Greenhaus at BTIG.

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.

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