The markets retreated during the midday with the Dow falling 36 points to 18,411 as possibility of a rate hike increased. Nasdaq eased a fraction to 5,211.
In a speech at the annual Jackson Hole Symposium today, Federal Reserve chair Janet Yellen discussed the different options that are available to the Fed to support the nation's economy during a downturn. She highlighted the current conditions of an improving labor market and an upbeat economic outlook. Because of the strengthening economy, Yellen suggested that an interest rate increase would be likely in the near future.
Business inventories dropped for the first time since the third quarter of 2011. Second quarter inventories fell $12.4 billion to weigh down the gross domestic product. Meanwhile, consumer spending was revised upward to 4.4%.
Mazda will recall approximately 190,000 model 2007 through 2012 CX-7 sport utility vehicles to fix a steering problem. Water may enter the front suspension ball joint fitting of vehicles with the default causing possible corrosion. The joint may then separate from the lower control arm. Steering control will be lost.
In the broad market, advancing issues outpaced decliners by a margin of more than 10 to 9 on the NYSE and by nearly 5 to 4 on Nasdaq. The broader S&P 500 slipped 2 points to 2,169. Bitcoin rose $3 to $578.
