U.S. stocks recovered from intraday losses to close close to where they started after minutes from the Fed indicated an increased possibility of a June rate hike. Bobbi Rebell reports.
U.S. stocks went south but recovered most of the losses by the closing bell, after the Federal Reserve released minutes from the April policy meeting. Investors took that report to mean the central bank could hike interest rates in June if backed by economic data. Higher rates help boost banks' profits, so financial stocks, like Bank of America, and JPMorgan Chase, rose sharply higher. Peter Kenny of Global Markets Advisory Group: (SOUNDBITE) PETER KENNY, SENIOR MARKET STRATEGIST, GLOBAL MARKETS ADVISORY GROUP, (ENGLISH) SAYING: "Assuming that we're going to see continued strength in the economy, continued employment gains, further signs of inflation at the consumer and producer level, I suspect we're going to see a move in rates, which mean that the financials as we're seeing today, should outperform the broader market." Bank stocks also rallied in Europe, pulling the markets higher. But the FTSE 100 finished flat. Back in the U.S., weaker demand for electronics and groceries hurt Target's quarterly profit and sales, and the retailer issued a weak earnings forecast. That dragged down its stock along with those of its rivals, Wal-Mart Stores and Costco. It was the opposite story with Lowe's. Like its rival, Home Depot, the home improvement retailer's sales rose, and it raised its profit outlook for the year. You may soon be able to make payments off your Fitbit. The wearable fitness device maker bought Coin, whose technology allows users to make payments through their mobile devices.