Stocks fell on Friday after Federal Reserve Chairman Ben Bernanke stopped short of signaling more action to boost growth, disappointing investors who had hoped for a new stimulus program.
Bernanke said the Fed was prepared to use tools to spur economic growth, but did not announce any new policies. Hopes for new stimulus had contributed to a three-day rally earlier this week, though equities later sold off as expectations moderated.
At this stage, there's no help from Mr. Bernanke. The early read was nothing of any import or anything dramatic. The market is taking it as a negative, said Roger Volz, director of cash equities at BGC Financial in New York.
If we hold below 1,141 (on the S&P) at the close, I'm looking for us to retest recent lows around 1,127, he said.
The Dow Jones industrial average <.DJI> was down 107.77 points, or 0.97 percent, at 11,042.05. The Standard & Poor's 500 Index <.SPX> dipped 8.30 points, or 0.72 percent, at 1,150.97. The Nasdaq Composite Index <.IXIC> was up 7.79 points, or 0.32 percent, at 2,427.42.
Contributing to the negative tone, the government earlier reported the economy grew much slower than previously thought in the second quarter.
Technology stocks helped put the Nasdaq into positive territory, with Micron Technology Inc
Bank of America Corp
Insurance firm Travelers Cos Inc
Tiffany and Co
(Editing by Jeffrey Benkoe)