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NEW YORK, Aug. 12 (Xinhua) -- U.S. stocks reversed early big losses to close mixed Wednesday, as investors continued to assess impacts of the Chinese central bank's decision to improve its foreign exchange rate formation system.
The Dow Jones Industrial Average edged down 0.33 point, or less than 0.01 percent, to 17,402.51. The S&P 500 added 1.98 points, or 0.10 percent, to 2,086.05. The Nasdaq Composite Index gained 7.60 points, or 0.15 percent, to 5,044.39.
Chinese yuan extended its decline on Wednesday but is unlikely to depreciate significantly as the central bank and stable fundamentals will not allow the currency to go into freefall.
The spot rate fell about three percent to its lowest level since October 2012 when the central bank reformed the exchange rate formation system on Tuesday. The central parity rate fell 1.6 percent, to 6.3306 against the U.S. dollar on Wednesday.
In a latest statement released on Wednesday, the central bank said there was no reason for the yuan to depreciate further.
The IMF described the Chinese central bank's move as "a welcome step" in a statement, saying a more market-oriented exchange rate would facilitate the operation of the special drawing rights (SDR) if the RMB was included in the basket.
In corporate news, shares of Alibaba plunged 5.12 percent to 73. 38 dollars apiece Wednesday after the China's e-commerce giant posted the slowest growth in more than three years.
Alibaba's revenue for the quarter ending June 30, 2015 was 3. 265 billion U.S. dollars, an increase of 28 percent compared with the same quarter of 2014.
Macy's Inc. slumped 5.06 percent to 64.11 dollars per share after posting weaker-than-expected quarterly results. It also cut its full-year outlook.
The retailer's earnings were 64 cents per diluted share for the second quarter of 2015, compared with earnings of 80 cents per diluted share in second quarter 2014.
On U.S. economic front, the number of job openings was little changed at 5.2 million on the last business day of June, the Labor Department reported Wednesday.
The CBOE Volatility Index, often referred to as Wall Street's fear gauge, slightly decreased 0.73 percent to end at 13.61 on Wednesday.
In other markets, the U.S. dollar dropped against other major currencies as doubts over whether the Federal Reserve would raise interest rate in September increased following the sharp decline of Chinese yuan.
In late New York trading, the euro rose to 1.1162 dollars from 1.1035 dollars in the previous session, while the dollar bought 124.22 Japanese yen, lower than 125.15 yen of the previous session.
Oil prices bounced as traders bought the dip after prior day's sharp decline.
The West Texas Intermediate for September delivery moved up 22 cents to settle at 43.3 dollars a barrel on the New York Mercantile Exchange, while Brent crude for September delivery increased 48 cents to close at 49.66 dollars a barrel on the London ICE Future Exchange.
Gold futures on the COMEX division of the New York Mercantile Exchange rose on a weaker U.S. dollar.
The most active gold contract for December delivery rose 15.9 dollars, or 1.44 percent, to settle at 1,123.60 dollars per ounce.
Related:
Yuan may stumble, but will not fall
BEIJING, Aug. 12 (Xinhua) -- Chinese yuan extended its decline on Wednesday but is unlikely to depreciate significantly as the central bank and stable fundamentals will not allow the currency to go into freefall.
The spot rate fell about three percent to its lowest level since October 2012 when the central bank reformed the exchange rate formation system on Tuesday. The central parity rate fell 1.6 percent, to 6.3306 against the U.S. dollar on Wednesday. Full story
China central bank says capable of stabilizing yuan
BEIJING, Aug. 12 (Xinhua) -- The recent fluctuation of the yuan exchange rate is "within control" and the central bank is "fully capable" of stabilizing the market if necessary, a central bank economist said on Wednesday.
"The central bank, if necessary, is fully capable of stabilizing the exchange rate through direct intervention in the foreign exchange market to avoid herd mentality resulting in irrational movements of the rate," economist Ma Jun with the People's Bank of China told reporters. Full story
China improves exchange rate formation system; yuan falls sharply
BEIJING, Aug. 11 (Xinhua) -- China's currency fell sharply in value on Tuesday following the central bank's decision to improve its "central parity system" to better reflect market development in the exchange rate between the Chinese yuan against the U.S. dollar.
Effective beginning Tuesday, daily central parity quotes reported to the China Foreign Exchange Trade System before the market opens should be based on the closing rate of the inter-bank foreign exchange rate market on the previous day, supply and demand in the market, and price movement of major currencies, the People's Bank of China (PBOC) said. Full story
