NEW YORK (AP) — Stocks fell in early trading on Wall Street as investors assessed whether a rally that has pushed stocks to record levels has run its course.
The Dow Jones industrial average climbed to a record on Tuesday and is on track to end higher for a sixth straight month. The Standard & Poor's 500 index is on track to gain for a seventh consecutive month, its longest winning streak since 2009.
Markets jumped on Tuesday after reports showed that consumer confidence was improving and home prices were rising at their fastest rate in seven years.
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Though investors were cheered by the strong reports they are also concerned that the Fed will start to ease back on its stimulus program as the economy improves.
The Fed has been buying $85 billion of bonds a month in an effort to keep interest rates low and boost the economy. That stimulus has also been a major factor supporting the rally in stocks.
There are no major economic reports scheduled on Wednesday.
In commodities trading, oil fell 13 cents, or 0.2 percent, to $94.91. Gold dropped $5.60, or 0.3 percent, to $1,384.40. The dollar fell against the euro and the Japanese yen.
In government bond trading, the yield on the 10-year Treasury note, which moves inversely to its price, fell to 2.16 percent from 2.17 percent. The yield surged Tuesday to its highest level in more than a year Tuesday as investors moved out of bonds on concern that the Fed plans to start easing back on its stimulus plan.
Amongst stocks making big moves:
Smithfield Foods surged $6.51, or 25 percent, to $32.49 after the company agreed to be acquired by meat processor Shuanghui International Holdings for approximately $4.72 billion.
Stewart Enterprises rose $3.33, or 34 percent, to $13.08 after the funeral company agreed to be acquired by Service Corp International for $1.1 billion in cash.
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