Taper Talk Hits The Dow

The equity markets limped through Wednesday after news of a bipartisan budget deal, one that still faces a vote, ignited jitters that the Federal Reserve has room to choke off some liquidity. After stabilizing earlier in the day, the sell-off in the Dow Industrial gained momentum into the close as traders positioned themselves defensively before Thursday's pivotal economic data. Equities were also weighed down by year-end window dressing and competition from the Treasury market with the 10-year note luring yield-hungry investors.

Global markets were lower in sympathy with the U.S. as the impact from higher U.S. rates could interrupt the fragile EU economic rebound as well as send emerging markets reeling. Investors are also frustrated by ECB Mario Draghi's reluctance to consider non-traditional methods, such as quantitative easing, to provide liquidity to European markets.

Here's Where The Markets Stood At The Close

• Dow Jones Industrial Index was down 129 (-0.8%) to 15,843
• S&P 500 was down 20 (-1.1%) to 1,782 
• Nasdaq Composite Index was down 56 (-1.4%) to 4,003.81

• FTSE 100 was down 0.24%
• Nikkei 225 was down 0.62% 
• Hang Seng Index was down 1.71% 
• Shanghai China Composite Index was down 1.49%

• MA, Announces a 10-for-1 stock split, a 83% increase in its quarterly dividend to $1.10 per share and plans for a $3.5-bln stock buyback program.
• AAL Upgraded by JP Morgan to Overweight from Neutral with a price target of $37. 
• CYTR Released encouraging results from a phase 2b clinical trial investigating the efficacy and safety of its aldoxorubicin cancer treatment

• OPK Falls in reaction to an unfavourable Seeking Alpha article
• GEVO Plans to sell an undisclosed number of common stock units and senior note units. 
• LH The stock was downgraded by analysts at Canaccord Genuity to a Hold from a Buy and the price target cut to $91 from $115 per share