The stock market is nearly flat in afternoon trading despite several solid economic reports from the morning session as the financial and energy sector drag down the market.

The S&P 500 Index is down 1.77 points, or 0.15 percent, to trade at 1,164.43 at 3:09 pm EST. The Dow Jones Industrial Average is up 29.93 points, or 0.28 percent, to trade at 10,763.60. The Nasdaq Composite is flat.

Since the U.S. stock market opened, the dollar gained against 46 pips against the euro and NYMEX crude oil futures are down 0.94 percent.

The biggest decliners of the S&P 500 include Southwestern Energy (NYSE:SWN), down 4.59 percent, and Huntington Bancshares (NASDAQ:HBAN), down 3.82 percent.

Big banks are among the sharpest decliners of the Dow, with Bank of America (NYSE:BAC) trading down 1.27 percent.

Late in the morning session, the dollar began rallying sharply against the euro and the stock market declined.

According to Scott Redler of T3Live, the market was hit with rumors that the Fed will raise the discount rate.

Peter Boockvar of Miller Tabak & Co., however, told Bloomberg that an actual leak from the Fed would never happen.

The rumors hit the forex and stock market around 11:15 a.m. EST. Although both markets pared some losses, they are still below their morning highs.