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Dow Slips Up on Fed Remarks

Jeremy Bowman
May 16, 2013

Stocks treaded water most of the day before dipping late in the session on remarks from the Fed about cutting its stimulus program. TheĀ Dow Jones Industrial Average (INDEX: ^DJI) finished down 42 points, or 0.3%.

San Francisco Federal Reserve President John Williams said the central bank could begin to cut its bond purchases if the economy continues to improve. The comments turned off investors, as the Fed's $85-billion monthly bond-buying program is seen as a central component to the market rally and the economic recovery. Other remarks from the Fed last Friday also indicated that it was preparing to scale back the stimulus, but a time frame has not been set.

Earlier in the day, investors managed to shake off some concerning economic reports. First, after two straight weeks at five-year lows, the initial unemployment claims tally jumped from 328,000 last week all the way up to 360,000. Analysts had expected just 330,000. Data from just one week is sometimes dismissed as an aberration, as the stat