NEW YORK (AP) — The stock market is turning lower in morning trading, erasing an early gain. Whole Foods plunged after cutting its profit forecast.
KEEPING SCORE: The Standard & Poor’s 500 index fell four points, or 0.2 percent, to 1,864 an hour after the opening bell. The Dow Jones industrial average fell three points to 16,397 and while the Nasdaq composite index fell 46 points, or 1.1 percent, to 4,035.
FRESH SQUEEZE: Whole Foods plunged $9.62, or 20 percent, to $38.32 after the company cut its profit outlook late Tuesday. The company said its facing increased competition as supermarkets, big-box stores and even online retailers step up their offerings of organic foods. It’s the third time the grocery chain has trimmed its profit forecast in the last six months.
PERCOLATING BUSINESS: Mondelez surged following news that it will combine its coffee business with D.E. Master Blenders to form a new company, Jacobs Douwe Egberts. The new company will sell Gevalia, Tassimo and Jacobs, among other coffee brands. Mondelez rose $2.78, or 8 percent, to $37.95.
IT’S ELECTRIC: Electronic Arts jumped $4.71, or 17 percent, to $32.73 after the video-game maker turned in stronger results late Tuesday. The maker of “The Sims” and “Madden NFL” reported higher profits and revenue than Wall Street expected.
and forecast stronger earnings over the next year. Electronic Arts has soared 43 percent so far this year.
YELLEN: Federal Reserve Chair Janet Yellen told Congress’ Joint Economic Committee that she expects low borrowing rates will continue to be needed for a “considerable time.” She also said stress in emerging markets and a faltering housing recovery are potential threats.
OTHER MARKETS: The yield on the 10-year Treasury note edged up to 2.61 percent from 2.59 percent late Tuesday. Crude oil rose 83 cents to $100.35 a barrel.