Stocks fall after Fed says US still needs support

Stocks fall as Fed says US still needs support; Homebuilders decline on weak housing outlook

Associated Press
Stocks fall after Fed says US still needs support
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Trader Timothy Nick, foreground center, works on the floor of the New York Stock Exchange Wednesday, Oct. 30, 2013. Stocks are mixed in early trading on Wall Street Wednesday as investors wait to hear what the Federal Reserve says about the future of its massive economic stimulus program. (AP Photo/Richard Drew)

NEW YORK (AP) -- The stock market is pulling back from all-time highs after the Federal Reserve said the U.S. economy still needs help from its stimulus program.

The Fed said the economy is expanding, but only moderately. It also said the housing recovery is slowing down, which sent homebuilder stocks lower.

The central bank will keep up its $85 billion in monthly bond purchases to keep interest rates low and encourage hiring and investment.

The Dow Jones industrial average fell 61 points, or 0.4 percent, to close at 15,618 Wednesday.

The Standard & Poor's 500 fell eight points, or 0.5 percent, to 1,763. The Dow and S&P 500 closed at record highs Tuesday.

The Nasdaq fell 21 points, or 0.6 percent, to 3,930.

Hess, Western Union and Aflac fell after reporting lower earnings.

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