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* Prison operator GEO tumbles on dividend suspension
* "Some time" before substantial progress seen on goals -
Fed
* Growth stocks outperform value
(Updates to market close)
By Chuck Mikolajczak
NEW YORK, April 7 (Reuters) - Major averages hovered near
unchanged on Wednesday, with the S&P closing up slightly after
the Federal Reserve released minutes from its most recent
meeting that reinforced the U.S. central bank's position to
remain patient before raising rates.
The major indexes held near unchanged for most of the day
but the S&P 500 briefly climbed to a session high after the
minutes, in which Fed officials said it would likely take "some
time" for substantial further progress on goals of maximum
employment and stable prices. But the gains were minor and short-lived, as many market
participants question the ability to hold off on a rate hike for
as long as the Fed has stated.
"We thought we were going to get something new from the
minutes of the Fed meeting, we were oddly mistaken on that one,"
said Art Hogan, chief market strategist at National Securities
in New York.
"The Fed has been more transparent all of this year about
where they stand and they really are not budging from that
stance."
The yield on the benchmark 10-year U.S. Treasury note
10USYT=RR moved higher late in the session. Still, it remained
below a 14-month high of 1.776% hit on March 30. The recent
pullback in yields has helped growth names and lifted technology
.SPLRCT and communication services .SPLRCL stocks on the
day.
Unofficially, the Dow Jones Industrial Average .DJI rose
17.57 points, or 0.05%, to 33,447.81, the S&P 500 .SPX gained
6.12 points, or 0.15%, to 4,080.06 and the Nasdaq Composite
.IXIC dropped 9.60 points, or 0.07%, to 13,688.78.
Value stocks, which include economically sensitive sectors
such as materials .SPLRCM and industrials .SPLRCI , maintain
a strong lead this year over their growth counterparts,
dominantly tech-related firms.
However, a resurgence in demand for tech stocks in recent
sessions amid renewed restrictions in Canada and parts of Europe
has raised questions over the longevity of the value trade.
Growth stocks .RLG outperformed value shares .RLV during
the session.
The upcoming earnings season and progress in a
multitrillion-dollar infrastructure proposal could decide Wall
Street's path forward.
Analysts have raised expectations for first-quarter S&P 500
earnings increase to 24.2%, according to Refinitiv IBES data as
of April 1, versus 21% forecast on Feb. 5.
But the sharp run up in earnings expectations could leave
the market primed for disappointment. JPMorgan Chase & Co JPM.N Chief Executive Officer Jamie
Dimon said the United States could be in store for an economic
boom through 2023 if more adults get vaccinated and federal
spending continues.
Prison operator GEO Group GEO.N fell sharply after
suspending quarterly dividend payments. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
1-year spread between growth and value stocks https://tmsnrt.rs/38Kf52d
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