Stocks end down for fifth day after Bernanke
After gains early in the day, the session closed lower, with the Dow declining about 19 points
Richard Drew / AP
By JeeYeon Park, CNBC.com
Stocks gave up all of the day's earlier gains Tuesday to close lower for a fifth straight session, after Fed chairman Ben Bernanke acknowledged the economic slowdown, but didn't imply any further monetary stimulus ahead.
The S&P 500 fell 1.23 points, or 0.10 percent, to end at 1284.94.
The tech-heavy Nasdaq slipped 1 point, or 0.04 percent, to close at 2701.56.
The CBOE Volatility Index, widely considered the best gauge of fear in the market, fell below 18.
Among key S&P sectors health care and materials gained, while techs slipped. Financials, which had been trading higher for most of the day, turned lower immediately after Bernanke's speech started.
"U.S. economic growth so far this year looks to have been somewhat slower than expected," said Bernanke. "A number of indicators also suggest some loss in momentum in labor markets in recent weeks."
"I'm not surprised," Data Saporta, economist at Credit Suisse told Reuters. "They see the slow patch as being transitory. It gives them a chance to revisit their central tendency forecasts later this month...it seems to me they are not panicking with the recent slow patch in data. They expect to see things picking up in the second half."
"The question is who steps on the pedal to accelerate the car—It’s out of our hands right now," the Dallas Fed President told CNBC.
Regions Financial said it will repurchase $1 billion in credit card accounts from Bank of America's credit card subsidiary, with the deal expected to close during the second quarter.
Morgan Stanley said it may cut the number of brokers in its wealth management division. The announcement follows a layoff of about 300 brokers in the previous quarter.
Oil gained amid expectations that OPEC will increase its production quota for the first time in 2-1/2 years this week, although the amount is still under discussion. London Brent crude gained $2.30 to settle at $116.78 a barrel, while U.S. light, sweet crude rose 8 cents to settle at $99.09.
Meanwhile, oil drillers including Halliburton and Baker Hughes advanced following a forecast from Dahlman Rose & Co stating that global spending on oil and gas exploration and production may grow 14 percent in 2011.
The dollar declined to a one-month low against a basket of currencies after a Chinese official said the greenback would continue to weaken versus other major currencies. But gold failed to decline on the heels of a weaker dollar, slipping $3.20 to settle at $1,544 an ounce.
General Motors said May vehicle sales in China slipped for the second consecutive month amid a slowdown in the world's largest market. Meanwhile, Ford CEO Allan Mulally is expected to tell investors the automaker plans to increase sales by 50 percent over the next four years.