Stocks Fall as Fed Uncertainty Weighs

U.S. stocks closed lower on Thursday, finishing out a strong October, as investors digested the possibility the Federal Reserve may taper asset purchases earlier than expected. The Dow Jones Industrial Average fell
73.01 points, or 0.47%, to close at 15,545.75, for an October gain of 2.8%. The S&P 500 Index declined 6.77 points, or 0.38%, to finish at 1,756.54, for a gain of 4.5% for the month. The Nasdaq Composite Index slipped 10.91 points, or 0.28%, to end at 3,919.71, for a 3.9% October gain.

American International Group Inc (AIG) reported a better-than-expected third-quarter operating profit, helped by strong growth in its property and casualty business. Its net income rose 17 percent to $2.17 billion, or $1.46 per share, from $1.86 billion, or $1.13 per share, a year earlier.

The average rate for the 30-year fixed-rate mortgage fell to 4.10% in the week that ended Oct. 31, hitting the lowest level since June, from 4.13% in the prior week, according to a Thursday report from federally controlled mortgage buyer Freddie Mac.

Bill Gross, manager of the world’s largest bond fund, urged fellow members of the “privileged 1 percent,” earning the highest incomes, to support higher U.S. taxes on carried interest and capital gains to help the economy.