Stocks Ended Lower as Yellen Questioned Valuations

U.S. stocks ended lower on Wednesday, as Federal Reserve Chairwoman Janet Yellen spooked investors by warning of potential pitfalls for investors. The Dow Jones Industrial Average fell 86.22 points, or 0.48%, to 17,841.98. The S&P 500 fell 9.31 points, or 0.45%, to 2,080.15. The Nasdaq Composite lost 19.68 points, or 0.40%, to 4,919.64.

Federal Reserve Chair Janet Yellen on Wednesday pointed to high valuations in the stock market and said the central bank needs to keep close tabs on the non-bank lending sector.

Just weeks after returning to the helm of the company he founded, Zynga Inc. Chief Executive Mark Pincus is slashing nearly a fifth of the videogame company’s workforce to focus on making fewer, higher-quality games. The announcement Wednesday of steep job cuts came as Zynga showed progress in turning around its business.

Wendy’s announced plans Wednesday to sell 640 of its company-owned restaurants in the United States and Canada. It intends to sell 380 restaurants this year and another 260 in 2016.

SpaceX chalked up another big test flight Wednesday, firing a capsule into the air to try out its new, super-streamlined launch escape system for astronauts.

Keurig Green Mountain Inc. (GMCR) on Wednesday reported fiscal second-quarter profit of $155.5 million. It had net income of 97 cents per share. Earnings, adjusted for amortization costs and non-recurring costs, came to $1.03 per share.

Rupert Murdoch-controlled Twenty-First Century Fox Inc reported a 1.2 percent rise in quarterly adjusted revenue. Net income attributable to shareholders fell to $975 million, or 46 cents per share, in the third quarter ended March 31, from $1.05 billion, or 47 cents per share, a year earlier. Revenue fell to $6.84 billion from $8.22 billion.

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