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U.S. stocks slide on soft GDP figures, lack of Fed guidance

Published 04/29/2015, 04:16 PM
Updated 04/29/2015, 04:47 PM
The Dow, NASDAQ and S&P 500 all closed lower on Wednesday amid soft GDP data

Investing.com -- Stocks on the U.S. equities markets fell broadly on Wednesday, as the Federal Reserve remained cautious on the timing of an interest rate hike following soft GDP data for the first quarter of the year.

The Dow Jones Industrial Average and the NASDAQ Composite index each fell by more than 0.4%, while all but one component on the S&P 500 closed in the red on a bearish day for markets.

Harsh winter weather combined with a strong dollar weighed on the economy in the first quarter, as GDP expanded by 0.2% far below analysts' forecasts of 1% growth. The FOMC, meanwhile, demonstrating that it will take a "data-driven approach," to its first rate hike in nearly a decade said it has removed all calendar references on a period for lift-off. Previously, the FOMC indicated it could start raising its benchmark Fed Funds Rate as early as June.

The Dow lost 0.41% or 74.61 to 18,035.53, while the NASDAQ dropped 31.78 or 0.63% to 5,023.64, as it continued to retreat from near-record levels reached at the end of last week. On the S&P 500, stocks in the Consumer Services, Health Care and Consumer Goods lagged as it fell 0.37% or 7.91 to 2,106.85. Stocks in the energy sector, the only industry to close in the green, led on Wednesday.

The top performer on the Dow was Caterpillar Inc (NYSE:CAT) which gained 1.30 or 1.51% to 87.50. The worst performer on the Dow was UnitedHealth Group Incorporated (NYSE:UNH) which fell 3.98 or 3.38% to 113.61.

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The biggest gainer on the NASDAQ was Versik Analytic a, which gained 4.21 or 5.80% to 76.85. Versik Analytic finished just ahead of Mondelez International Inc (NASDAQ:MDLZ), which rose 1.90 or 5.80% after posting strong quarterly earnings on the basis of cost cutting and price increase measures. Mondelez manages brands such as Oreo and Chips Ahoy! cookies, as well as Trident gum. The worst performer was Wynn Resorts Limited (NASDAQ:WYNN), which plunged 21.71 or 16.64% to 108.77 after reporting weak earnings curbed by struggles with its casino in Macau.

The top performer on the S&P 500 was Genworth Financial Inc. (NYSE:GNW), which gained 0.93 or 11.64% to 8.92, after the Virginia-based insurance company beat analysts' forecasts for first quarter profits. Genworth Financial finished just ahead of Salesforce.com Inc (NYSE:CRM), which rose 7.76 or 11.60% to 74.65, amid speculation that the global cloud computing company could be up for sale. Wynn Resorts was also the worst performer on the S&P 500.

One day after tumbling more than 15% after failing to meet earnings' forecasts, Twitter (NYSE:TWTR) plunged further on Wednesday. Shares in Twitter fell 3.78 or 8.94% to 38.49.

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