Fed's statement Drop Wall Street

New York - U.S. stock markets closed lower on stock trading on Tuesday (7 / 6) after the statement the Fed Chairman Ben Bernanke about the economy.

S & P 500 index was the lowest level in two months after Ben Bernanke began speaking. He said the economy slowed but did not advise the central bank for monetary stimulus to encourage growth. In addition, Bernanke warned policymakers in Washington who aggressively to cut the budget. According to Bernanke, it has the potential to disrupt economic recovery.

"It's not what the market expected from Bernanke, but also not negative enough. But I see its impact will be limited. It seems unlikely to continue on the next day," said Wedbush Morgan Managing Director Stephen Massocca, as quoted from yahoofinance.com.

Bernanke indicated last slowdown might not be so long and should be able to grow in the second half of this year. As is known, recent economic data is not good that is labor pushing the index below the level of support.

The Dow Jones fell 19.15 points, or 0.16% to as low as 12,070.81. S & P 500 index fell 1.23 points, or 0.10% to as low as 1284.94. The Nasdaq index to a level of 2701.56.

Defensive Stocks in the healthcare and utilities posted a profit after Bernanke's statement but the financial sector, information technology has become negative. KBW Bank Index rose 1% at first and then fell 0.2%. Thin trading volume amounted to 6.67 billion shares on the stock exchange New York Stock Exchange, NYSE Amex and Nasdaq. When compared to last year's average of 7.61 billion shares.

For corporate news, International Paper Co. offered U.S. $ 3.3 billion unsolicited Temple Inland Inc. Shares of Temple Inland to the level of U.S. $ 29.49 while shares of IP's rose 0.4% to as low as U.S. $ 29.78.