Roundup: U.S. stocks retreat on rate hike worries

U.S. stocks reversed early gains to close mildly lower Wednesday, as Wall Street continued to weigh the likelihood of a year-end rate hike by the Federal Reserve.

The Dow Jones Industrial Average fell 55.99 points, or 0.32 percent, to 17,702.22. The S&P 500 lost 6.72 points, or 0.32 percent, to 2,075.00. The Nasdaq Composite Index dipped 16.22 points, or 0.32 percent, to 5,067.02.

With no major economic data out Wednesday, the country's Veterans Day, investors were still assessing the rising odds of a December rate hike following a strong jobs gain in October.

Many analysts believed that the U.S. central bank will raise interest rates next month, as Fed Chair Janet Yellen said that the Fed may pull the trigger at its December policy meeting if the U.S. economy is performing well.

Trading volumes were lower than usual as bond markets and banks were closed in observance of Veterans Day.

A plunge in oil prices also weighed on market sentiment. Dragged by diving oil prices, energy sector, the biggest laggard among the S&P 500's 10 sectors, tumbled 1.91 percent Wednesday.

In corporate news, shares of Macy's slumped 13.99 percent to 40.44 U.S. dollars apiece Wednesday after the release of the company's disappointing quarterly results. The U.S. retailer also cut its outlook for the full year.

Macy's reported earnings per share of 36 cents in the third quarter of 2015, compared with 61 cents per diluted share in the third quarter of 2014.

Latest data from Thomson Reuters showed that S&P 500 companies' blended earnings in the third quarter of 2015 are expected to decline 0.9 percent year on year, while revenue growth is forecast to decrease 4.3 percent.

A total of 451 companies in the S&P 500 have reported earnings for the third quarter of 2015 to date.

The CBOE Volatility Index, often referred to as Wall Street's fear gauge, rose 5.04 percent to end at 16.06 Wednesday.

In other markets, oil prices dropped as the market expected the global supplies to exceed the demand.

The West Texas Intermediate for December delivery moved up 34 cents to settle at 44.21 dollars a barrel on the New York Mercantile Exchange, while Brent crude for December delivery increased 25 cents to close at 47.44 dollars a barrel on the London ICE Futures Exchange.

The U.S. dollar decreased against other major currencies after the greenback soared to the highest level in seven months in the previous session.

In late New York trading, the euro rose to 1.0743 dollars from 1.0704 dollars in the previous session, while the dollar bought 122.90 Japanese yen, lower than 123.24 yen of the previous session.

Gold futures on the COMEX division of the New York Mercantile Exchange fell as the expected December Fed rate hike continues to be priced into the market.

The most active gold contract for December delivery declined 3.6 dollars, or 0.33 percent, to settle at 1,084.90 dollars per ounce. Endit