* Tesla shares hit record after bullish brokerage note
* JPMorgan slips; bank to pay regulators $920 million in
* Agilent jumps, to spin off part of its business
* Dow off 0.21 pct, S&P down 0.22 pct, Nasdaq up 0.06 pct
By Chuck Mikolajczak
NEW YORK, Sept 19 U.S. stocks pulled back
slightly on Thursday in the wake of the Federal Reserve's
surprise decision to maintain its stimulus intact, which had
pushed the S&P 500 to a record high.
Major U.S. stock indexes oscillated between modest gains and
losses after Wednesday's rally. Many market participants had
expected the Fed to announce it would begin to trim its
stimulus, but the central bank instead said it would continue
buying $85 billion in bonds every month.
The program has been instrumental in lifting the benchmark
S&P index 20 percent this year while keeping Treasuries yields
"People are reconsidering (the Fed decision)," said Peter
Jankovskis, co-chief investment officer at OakBrook Investments
LLC in Lisle, Illinois. "(The market) may be coming around to
the view the Fed is a little worried, the economy isn't as
strong as some people were thinking."
The Fed said it wants more evidence of solid economic growth
before beginning to withdraw its stimulus. Data on Thursday
showed factory activity in the U.S. mid-Atlantic region
increased by the most in more than two years and firms' optimism
about the future hit a 10-year high.
A Reuters poll of 17 primary bond dealers on Wednesday found
that nine were now looking for the U.S. central bank to trim its
bond purchases in December, but most said their forecasts were
very far from certain.
News that the Fed would delay winding down its stimulus
until it had more evidence of solid economic growth boosted
global equity markets on Thursday, especially emerging markets,
as investors returned to riskier assets.
The Dow Jones industrial average fell 33.02 points or
0.21 percent, to 15,643.92, the S&P 500 lost 3.76 points
or 0.22 percent, to 1,721.76 and the Nasdaq Composite
added 2.086 points or 0.06 percent, to 3,785.727.
The S&P hit 1,729.86, a record intraday high. The broad
benchmark and the 30-stock Dow industrials closed at record
highs Wednesday, while the Nasdaq Composite closed at its
highest in 13 years.
JPMorgan Chase & Co, fell 1.5 percent to $52.63
after the biggest U.S. bank agreed to pay approximately $920
million in penalties to regulators in two countries to settle
some of its potential liabilities from its $6.2-billion "London
Whale" derivatives loss last year, according to terms made
public on Thursday. The KBW bank index fell 1.5 percent.
Shares of Tesla Motors hit a record high of
$179.69, boosted in part by an upbeat note from analysts at
Deutsche Bank. Shares of the electric car maker were recently up
8 percent at $179.46.
Agilent Technologies was one of the best performers on
the S&P 500 after the company said it will spin off its
electronic measurement business to focus on its fast-growing
healthcare business. The stock gained 3.7 percent to $51.14.
Oracle Corp forecast sales and profit for its
second quarter that fell short of expectations as it continues
to battle soft global IT demand and smaller rivals. Its shares
slipped 0.5 percent to $33.70.
Rite Aid Corp shares surged 19.9 percent to $4.45
after the drugstore chain raised its profit forecast for the
current year after reporting a fourth straight quarterly profit.