Stocks slip as Fed euphoria fizzles

|By:, SA News Editor

Stocks pulled back to consolidate yesterday's Fed-induced gains, as investors try absorb the lack of tapering and decide what it means.

Today's pause demonstrates how investors are plotting their next moves rather than rushing to buy into a market that has seen the Dow rise nearly 6% so far this month and 19% YTD.

Defensive sectors, the biggest beneficiaries of the Fed's U-turn, led decliners; home builders, which also surged yesterday, suffered sharp declines.

Treasury prices fell after a batch of stronger than expected economic data (I, II, III), with the 10-year yield rising to 2.75% after tumbling to a five-week low yesterday.

Crude oil futures slid 1.5% to settle at $106.39; gold continued to move, jumping 4.7% to $1,369.30.