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US rally a distant memory as shares tumble at close after Fed minutes

Last updated: 16:12 21 Feb 2018 EST, First published: 05:14 21 Feb 2018 EST

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  • US stocks reverse gains; much lower at close

  • TSX higher

  • Fed minutes indicate more rate rises

The US stock rally became a rapidly distant memory on Wednesday as shares tumbled into the close to finish lower.

It comes after the release of Fed minutes from Janet Yellen's last meeting, which suggested that interest rate rises will become the normal.

Markets were already nervous about potential rises and then after today's news, bond yields jumped, with the 10-year Treasury note hitting a fresh four-year high.

The Dow Jones sank almost 167 points at 24,797, while the S&P 500 lost almost 15 points at 2,701.

The tech heavy Nasdaq lost around 16 points to stand at 7,218.

In Toronto, the TSX added over 84 points to stand at 15,524.

In crypto currency world, Bitcoin's value shed 11.37% to US$10,380 - below  the US$11,000 mark, making it on track for the worst day in two weeks.

MID-SESSION

US stocks are still in positive territory at mid-session.

The Dow Jones is up around 123 points at 25,088.

The S&P 500 added 16 points to 2,732.

The Nasdaq is up over 59 points at 7,293.

US crude - West Texas Intermediate - is down 0.36% to US$61.57  a barrel.

In Toronto, the TSX is up over 133 points at 15,572.

In notable movers, Anthera Pharmaceuticals Inc (NASDAQ:ANTH) shares added 50% to US$2.535 after Roth Capital started coverage with a 'buy' rating and a US$10.00 price target.

The Hackett Group Inc (NASDAQ:HCKT) added 10.5% to US$18.41 as the firm posted upbeat quarterly earnings and increased its annual dividend from $0.30 to $0.34 per share.

Cardtronics PLC (NASDAQ:CATM) lost around 4% to US$23.70 after it reported weak full year 2018 guidance following a fourth quarter earnings beat.

Adjusted earnings came in at 73 cents per share, beating estimates by 10 cents.

Sales were $363mln, beating estimates by US$23 million.

In focus later will be the Fed minutes from Janet Yellen's last meeting as chair of the central bank.

 

OPEN

US stocks started on the front foot on  Wednesday as the Dow Jones recovered from yesterday's plunge.

The index   added 57 points at 25,021 in early deals to 25,021.

The broader based S&P 500 added 10.33 at 2,726, while the Nasdaq gained 39 to stand at 2,274.

In Toronto, the TSX added almost 100 points at 15,539.

In London, the FTSE 100 is up around  24 points at 7,271 at the time of writing.

In US stocks, a notable mover was Advance Auto Parts (NYSE:AAP), which surged almost 13% to US$118.30 after it posted fourth quarter earnings that exceeded market forecasts.

The US automotive aftermarket parts provider reported net income of US$113.7mln, or US$2.49 a share, in the quarter to December 31, compared to US$125.6mln, or 84 cents a share, a year ago.

Excluding the impact of the new tax law and one-time items, the company earned 77 cents a share, up from US$1.0 a share the previous year.

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