LONDON (ShareCast) - - Bernanke comments paint mixed picture
- Tapering could happen in next few meetings if economy improves
- Target, Lowe's both miss quarterly forecasts

Dow Jones: -0.52%
Nasdaq: -1.11%
S&P 500: -0.83%

After a strong start, stocks in the US had dropped sharply by the close on Wednesday as concerns over the Federal Reserve's 'exit strategy' of monetary stimulus dampened sentiment on Wall Street.

In a prepared speech to Congress in Washington, Fed Chairman Ben Bernanke initiated a dovish tone, beginning by saying that the central bank would not prematurely scale back its asset purchase programme for risk of endangering the economic recovery. He said that the outlook still remains uncertain given the weak labour market and high levels of unemployment, while inflation is still low.

He said that a highly accommodative stance will remain appropriate “for a considerable time after the asset purchase programme ends and the economic recovery strengthens”.

However, he did hint that a scaling back of quantitative easing (QE) measures could happen “in the next few meetings” if the Fed sees a sustained improvement in the economy.

Market Analyst Craig Erlam from Alpari said that Bernanke’s “incredible U-turn” over a potential ‘tapering’ on Wednesday means markets will be “extremely sensitive to any comments from Fed officials as well as economic data releases in the coming months”.

“We should now see a strong return to the kind of moves seen before the announcement of QE3, with positive data prompting selling in equities and a strong dollar, and weak data prompting the opposite reaction,” Erlam said.

Target drops as earnings disappoint

Retail giant Target Corp was a heavy faller today after reporting first-quarter earnings per share (EPS) of 77 cents, down from 104 cents a year earlier and well below the 95 cents consensus estimate. The firm also cut its full-year EPS range as it blamed poor weather for soft sales in the first quarter.

Home-improvement retailer Lowe's also disappointed with its first-quarter figures, but shares edged higher after upbeat comments about strong current trading.

Pharmaceuticals giant Bristol-Myers Squibb surged today after Citigroup upgraded the stock from 'neutral' to 'buy'. The broker said that the drug maker is helping to bring about "the beginning of the end for cancer", hailing the firm's new treatment which could win approval by next year.

Shares of Saks jumped after Bloomberg News reported that the company had hired Goldman Sachs to explore its strategic options, according to two people with knowledge of the matter.

Luxury-home builder Toll Brothers said fiscal second-quarter earnings increased by more than expected alongside a rise in the company’s revenue.

S&P 500 - Risers
Mead Johnson Nutrition Co. (MJN) $85.90 +6.25%
Bristol-Myers Squibb (BMY) $46.40 +5.31%
Pioneer Natural Resources Co. (PXD) $143.53 +3.28%
Staples Inc. (SPLS) $15.17 +2.85%
Express Scripts Holding Co (ESRX) $62.49 +1.92%
Pfizer Inc. (PFE) $29.30 +1.81%
NetApp Inc. (NTAP) $37.28 +1.77%
Seagate Technology Plc (STX) $42.17 +1.57%
Home Depot Inc. (HD) $79.69 +1.25%
Lowe's Companies Inc. (LOW) $42.97 +1.22%

S&P 500 - Fallers
First Solar Inc. (FSLR) $52.40 -5.81%
Allegheny Technologies Inc. (ATI) $29.48 -4.72%
Amphenol Corp. (APH) $77.64 -4.15%
Apollo Group Inc. (APOL) $20.61 -4.05%
JDS Uniphase Corp. (JDSU) $13.29 -4.04%
Target Corp. (TGT) $68.40 -4.01%
Safeway Inc. (SWY) $23.39 -3.78%
Crown Castle International (CCI) $74.05 -3.68%
Netflix Inc. (NFLX) $228.56 -3.60%
Helmerich & Payne Inc. (HP) $62.39 -3.57%

Dow Jones I.A - Risers
Pfizer Inc. (PFE) $29.30 +1.81%
Home Depot Inc. (HD) $79.69 +1.25%
JP Morgan Chase & Co. (JPM) $53.63 +1.15%
General Electric Co. (GE) $23.86 +0.85%
Hewlett-Packard Co. (HPQ) $21.23 +0.57%
Travelers Company Inc. (TRV) $83.77 +0.17%
Procter & Gamble Co. (PG) $78.82 +0.03%

Dow Jones I.A - Fallers
Cisco Systems Inc. (CSCO) $23.34 -2.79%
E.I. du Pont de Nemours and Co. (DD) $55.57 -1.44%
United Technologies Corp. (UTX) $96.25 -1.33%
Merck & Co. Inc. (MRK) $46.71 -1.31%
Verizon Communications Inc. (VZ) $51.47 -1.15%
3M Co. (MMM) $110.79 -1.09%
Bank of America Corp. (BAC) $13.31 -0.97%
Unitedhealth Group Inc. (UNH) $62.28 -0.94%
American Express Co. (AXP) $74.44 -0.89%
AT&T Inc. (T) $36.62 -0.87%

Nasdaq 100 - Risers
Staples Inc. (SPLS) $15.17 +2.85%
Mondelez International Inc. (MDLZ) $31.77 +2.47%
Express Scripts Holding Co (ESRX) $62.49 +1.92%
NetApp Inc. (NTAP) $37.28 +1.77%
Seagate Technology Plc (STX) $42.17 +1.57%
Intuit Inc. (INTU) $58.59 +1.21%
Mylan Inc. (MYL) $31.55 +1.02%
Regeneron Pharmaceuticals Inc. (REGN) $262.42 +0.95%
Cognizant Technology Solutions Corp. (CTSH) $65.15 +0.84%
Monster Beverage Corp (MNST) $56.88 +0.80%

Nasdaq 100 - Fallers
Baidu Inc. (BIDU) $95.14 -3.93%
Catamaran Corp (CTRX) $48.57 -3.59%
Nvidia Corp. (NVDA) $14.40 -3.49%
Fossil Inc. (FOSL) $104.44 -3.44%
Priceline.Com Inc. (PCLN) $798.03 -3.38%
Altera Corp. (ALTR) $32.80 -3.27%
Intuitive Surgical Inc. (ISRG) $470.30 -3.21%
Citrix Systems Inc. (CTXS) $64.41 -2.95%
Vodafone Group Plc ADS (VOD) $29.33 -2.88%
Garmin Ltd. (GRMN) $35.63 -2.84%

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