Stocks fell in a choppy trading session after the latest minutes raised concerns about the global economy. Bobbi Rebell reports.
Stocks trimmed their losses after the release of the minutes of the Fed policymakers last meeting. It showed that the Fed had edged toward a rate hike because of the strengthening job market. Concerns over the slowdown in China's growth had earlier knocked stocks lower, especially energy. Chevron and ExxonMobil were among the Dow's biggest losers. Retailers reported mixed results. Target's quarterly profit doubled. The company raised its full year profit targets. Home and apparel sales rose sharply. And opposite picture at American Eagle Outfitters. The teen retailer warned its comparable store sales growth would drop in its current quarter. Weight Watchers gained ground. Morgan Stanley upgraded the shares to "equal-weight" after their 76 percent decline this year, saying valuation now reflects its weak outlook. In economics news, consumer prices inched up 0.1 percent in July. J.P. Morgan's Phil Guarco prefers to look at the gauge the Fed looks at: personal consumption expenditures. SOUNDBITE: PHIL GUARCO, GLOBAL HEAD OF FIXED INCOME STRATEGY, J.P. MORGAN (ENGLISH) SAYING: "We think these lower numbers in many ways are still the residual effect of commodity prices having fallen so much in the first half of the year." The inflation data supported expectations of an interest rate hike, and that sparked further selling of stocks in Europe.