NEW YORK (TheStreet) -- Major U.S. stock markets were slipping Wednesday as fears of a U.S. default overshadowed promises of more stimulus under Janet Yellen, who is expected to be nominated to succeed Ben Bernanke at the central bank.
The S&P 500 was down 0.31% to 1,650.36 though short-term Treasury yields, that have been particularly sensitive to the activities in Washington, seemed to calm bond markets. The 1-month bill was rising 1/32, diluting the yield to 0.281%.
Yellen's previous statements in support of the Fed's stimulus program have lent support to investors pushing for the central bank to do all it can to assist in the country's economic recovery.
As for the government shutdown that began Oct. 1, Obama said he is willing to negotiate with Republican leaders. Obama said he would begin talks if Republicans move to promptly end the shutdown and raise the debt ceiling, even if it was only for a temporary four to six weeks. The Dow Jones Industrial Average was off 0.16% to 14,753.28. The Nasdaq was lower by 0.91% to 3,661.09. Prior to the Yellen announcement, the Fed is scheduled to release a summary of its September policy meeting, a gathering at which policymakers maintained the current pace of their bond-buying program amid concerns that current fiscal policy is restraining economic growth. The minutes will be released at 2 p.m. K12 Inc. (LRN) shares were plummeting 36.34% to $18.19 after shares of the online education services were cut to "neutral" from "outperform" at Baird and to "market perform" from "outperform" at BMO after the company said that average student enrollments rose 5.7% to 128,550 in the first quarter fiscal 2014 from a year ago, which was below management's own expectations. Ariad Pharmaceuticals (ARIA) shares were plunging 70.89% to $4.98 after the company admitted Wednesday that its leukemia drug Iclusig causes more blood clots and heart-related side effects than previously reported, forcing the company to halt enrollment in Iclusig clinical trials and advise patients currently on the drug to lower the dose. Yum! Brands (YUM) was surrendering 8.37% to $65.31 after the fast-food restaurant group reported third-quarter earnings that were lower than expected as same-store sales in China dropped 11% in the quarter. Men's specialty retailers JoS. A. Bank Clothiers (JOSB) and The Men's Wearhouse (MW) were both surging after JoS. A. Bank confirmed media reports that it has approached Men's Wearhouse to buy the company for $48 a share in cash in a $2.3 billion deal, representing a roughly 42% premium to the closing price of the acquisition target on September 17, the day before the proposal was made. However, The Men's Warehouse on Wednesday rejected the approach saying that it "significantly undervalues" the company. Men's Wearhouse shares were jumping 28.12% to $45.15 and Jos. A. Bank was advancing 8.5% to $45.20. Alcoa (AA) was popping 3.84% to $8.25 after the largest U.S. aluminum producer posted profits that beat analyst forecasts. Follow @atwtse -- Written by Andrea Tse in New York >To contact the writer of this article, click here: Andrea Tse.>
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