* Fed presidents Lockhart, Kocherlakota urge accommodative
* US Airways shares fall after antitrust settlement
* Dish Network's stock up on quarterly results
* Dow off 0.2 pct; S&P 500 down 0.2 pct; Nasdaq flat
By Caroline Valetkevitch
NEW YORK, Nov 12 The Dow and the S&P 500
declined on Tuesday after rising bond yields increased debate
over how soon the Federal Reserve would start trimming its
Fed officials offered diverging views and added to the
uncertainty about the outlook for the Fed's easy-money policies.
Among them, Dallas Fed President Richard Fisher told CNBC that
the Fed's program of buying $85 billion in bonds every month to
stimulate the economy cannot continue forever.
The day's decline, which followed two days of gains and
record high closes on the Dow, were led by financials, energy
and utilities sectors. A 2.2 percent drop in U.S. oil futures
hurt energy names like Chevron, which slid 0.9 percent
Driving the market "has been worries over the timing of the
taper," said Quincy Krosby, market strategist with Prudential
Financial, which is based in Newark, New Jersey.
She said investors are watching 10-year U.S. Treasury note
yields, which have moved higher as speculation increases that
the Fed could move sooner rather than later.
"You have various Federal Reserve officials speaking, and
the message seems to be the discussion of the taper has begun."
During the session, bond yields hit their highest level
since mid-September, though that level is still lower than a
The Dow Jones industrial average slipped 32.43
points, or 0.21 percent, to end at 15,750.67. The Standard &
Poor's 500 Index dropped 4.20 points, or 0.24 percent, to
finish at 1,767.69. The Nasdaq Composite Index eked out
a tiny gain of just 0.13 of a point to close at 3,919.92.
Volume was lighter than usual for a second day, totaling
about 5.8 billion shares traded on the New York Stock Exchange,
the Nasdaq and the NYSE MKT, below the five-day average closing
volume of about 6.62 billion, according to BATS exchange data.
Some market watchers have begun to doubt that the Fed will
wait until March to cut back on stimulus after the Labor
Department said on Friday the U.S. economy created 204,000 jobs
On Tuesday, Minneapolis Fed Bank President Narayana
Kocherlakota and Atlanta Fed President Dennis Lockhart said
monetary policy should remain accommodative. Neither is
currently a voting member of the Fed's policy-setting committee.
But the key Fed comments this week may come during a Senate
Banking Committee confirmation hearing for Fed Vice Chair Janet
Yellen, who has been nominated to succeed Ben Bernanke as Fed
chairman. Yellen has been a big supporter of the Fed's current
Among the day's more volatile stocks, US Airways Group Inc.
gained 1.1. percent to close at $23.52, reversing
earlier losses. The company and American Airlines
agreed to give up landing spots and gates to low-cost carriers
at several U.S. airports to win U.S. antitrust approval for
their proposed merger.
Stocks of several low-cost carriers rose. JetBlue Airways
Corp jumped 6.1 percent to $8.16 and Southwest Airlines
Co rose 1.2 percent to $18.03.
Sarepta Therapeutics was one of the day's biggest
losers, plunging 64 percent to $13.16 after the U.S. Food and
Drug Administration said the company's drug to treat a rare
muscle disorder needed further testing. It was one of the
Nasdaq's most active stocks.
In the utility sector, shares of NRG Energy fell 3.5
percent to $27.06 after the power company reported results and
adjusted its earnings outlook.
Dish Network Corp posted quarterly results that
beat Wall Street's estimates after it added 35,000 pay-TV
subscribers, far exceeding expectations. The stock rose 6
percent to $50.35.
Decliners outnumbered advancers on the NYSE by a ratio of 19
to 11, while on the Nasdaq, 14 stocks fell for every 11 that