Comments by New York Fed President William Dudley hinting at a rate hike in December weighed on stocks. Bobbi Rebell reports.
Stocks faced broad based selling Thursday. Materials and energy stocks posting the biggest slide as commodity prices fell. All three major indicies closed deep in the red. Lots of Fed heads speaking. At a research conference Chair Janet Yellen did not comment on the economy or the timing of a rate hike. While New York Fed President William Dudley said the conditions for a rate hike may be satisfied but the outlook for the U.S. economy is still unclear. SOUNDBITE: WILLIAM DUDLEY, PRESIDENT NEW YORK FEDERAL RESERVE (ENGLISH) SAYING: "Spare labor resources are shrinking. But there still is some risk that the growth pace could slow as the trade sector acts as a drag on aggregate economic activity." Retailers rebounding after Kohl's reported a surprise upside to earnings and reiterated Q4 guidance - results in sharp contrast to Macy's disappointing news the prior day. And PayPal slid after a Wall Street Journal report that Apple is talking to U.S. banks about developing a rival payment service. In economic news, weekly U.S. jobless claims held steady, pointing to health in the labor market. In Europe, stocks posted their biggest drop since September on weak earnings and falling U.S. equities.