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The Dow Jones Industrial Average today jumped after U.S. Federal Reserve Chair Janet Yellen suggested the central bank must continue its stimulus efforts for the U.S. economy. The Nasdaq, however, slumped after several tech giants reported poor first-quarter earnings. Here are the closing numbers:
DOW JONES: 16,518.54, +0.7%
S&P 500: 1,878.21, +0.6%
NASDAQ: 4,067.67, -0.3%
And now here is today's top market news – plus watch Money Morning's trading expert Shah Gilani talk about today's markets on FOX Business' "Varney & Co.":
- More Pumping: Fed Chair Janet Yellen told the Joint Economic Committee of Congress that the U.S. economy needed significant support to buffer the "considerable slack" in the labor market. Yellen also stressed risks in the weakened housing market and rising geopolitical tensions across the globe.
- Having a Bad Day: Several tech titans had horrible days on bad earnings. Shares of Groupon Inc. (Nasdaq: GRPN) plunged by more than 20% after reporting a first-quarter loss of $0.06 per share. AOL Inc. (NYSE: AOL) plummeted more than 20% to a near 52-week low. Shares of cyber-security firm FireEye Inc. (Nasdaq: FEYE) fell by more than 22% to reach a 52-week low. And e-commerce firm Zulily Inc. (Nasdaq: ZU) plummeted more than 29%.
- The Excitement Builds: Plans for the Alibaba initial public offering (IPO) was the talk of the tech industry on Wednesday. Rumors are swirling the company could achieve a $200 billion market cap on its first day of trading. But the biggest surprise today was shares of Yahoo! Inc. (Nasdaq: YHOO) slumping by more than 6%. The company owns a 24% stake in Alibaba and will sell one-third of its shares when the IPO happens. For all the Alibaba details, go here.
- Profit Starved: Shares of Whole Foods Market Inc. (NYSE: WFM) fell by more than 19% on lowered 2014 profit expectations. This is the third time the company has slashed its 2014 prospects amid increased competition in the natural and organic grocery sector. The company plans to slash prices in order to stay out ahead of its primary competitors in Trader Joe's, Fresh Market Inc. (NYSE: TFM), and even Wal-Mart Stores Inc. (NYSE: WMT). For a closer look at WFM's tumble, go here.