US close: Stocks led lower by energy sector as investors digest Fed comments

The Dow Jones Industrial Average and the S&P 500 ended down 1.4%, while the Nasdaq closed 1.2% lower.

Energy stocks suffered the brunt of the losses as oil prices tanked after the US Energy Information Administration reported a bigger-than-expected increase of 4.2m barrels in crude supplies for the week ended 6 November.

West Texas Intermediate slid 3.1% to $41.58 a barrel, while Brent shed 3.7% to $44.11 a barrel.

Commodities stocks also came under pressure as metals prices declined.

Elsewhere, although Fed chairwoman Janet Yellen failed to comment on the economy or make any hints as to the timing of a possible rate hike, other Fed speakers did.

New York Fed President William Dudley said in a speech that it was possible the conditions the Committee has established to begin to normalise monetary policy could soon be satisfied.

Meanwhile, St. Louis Fed President James Bullard told the Cato Institute it was prudent to hike rates and shrink the Fed's balance sheet towards more “normal settings”, while Richmond Fed President Jeffrey Lacker said he did not think recent low inflation “implies a more permanent departure from our target.”

Unemployment claims miss expectations

Initial unemployment claims were unchanged at 276,000 for the week ending on 7 November, according to the Department of Labor, compared with analysts' expectations for a reading of 270,000.

"Claims are running about 7% below last year's level, and no-one was complaining that layoffs were too high in the fall of 2014," said Ian Shepherdson chief economist at Pantheon Macroeconomics.

"With indicators of hiring still extremely strong, outside the small manufacturing sector, claims are consistent with 250,000-plus payrolls."

In company news, Macy's declined after analysts at Credit Suisse cut their target price on the stock from $47 to $38, while department store Kohls surged after its sales and profit beat estimates.

PayPal was in the red after a Wall Street Journal report that Apple was in talks with US banks to develop a rival payment service.

In currency markets, the dollar gave back earlier gains, trading down 0.6% against the euro, 0.1% against the pound and 0.2% against the yen.

S&P 500 - Risers

Kohls Corp. (KSS) $45.80 +6.12%

Nordstrom Inc. (JWN) $63.51 +1.91%

Verisk Analytics Inc. (VRSK) $71.93 +1.51%

Activision Blizzard Inc. (ATVI) $35.03 +1.33%

PVH Corp. (PVH) $89.39 +1.28%

Dollar General Corp (DG) $63.35 +1.12%

NextEra Energy Inc. (NEE) $100.74 +1.02%

United Technologies Corp. (UTX) $99.22 +0.98%

Macy's Inc. (M) $40.83 +0.95%

Reynolds American Inc. (RAI) $45.41 +0.91%

S&P 500 - Fallers

Advance Auto Parts (AAP) $164.70 -15.40%

CONSOL Energy Inc. (CNX) $7.12 -5.94%

Owens-Illinois Inc. (OI) $18.80 -5.81%

Freeport-McMoRan Inc (FCX) $8.77 -5.80%

Seagate Technology Plc (STX) $34.08 -5.65%

W.W. Grainger Inc. (GWW) $199.77 -5.40%

Archer-Daniels-Midland Co. (ADM) $38.51 -4.95%

International Paper Co. (IP) $40.26 -4.87%

United Rentals Inc. (URI) $73.48 -4.56%

Quanta Services Inc. (PWR) $20.67 -4.53%

Dow Jones I.A - Risers

United Technologies Corp. (UTX) $99.22 +0.98%

Cisco Systems Inc. (CSCO) $27.83 +0.04%

Dow Jones I.A - Fallers

Caterpillar Inc. (CAT) $68.67 -4.51%

Exxon Mobil Corp. (XOM) $79.42 -2.70%

Chevron Corp. (CVX) $89.87 -2.52%

Goldman Sachs Group Inc. (GS) $192.70 -2.38%

JP Morgan Chase & Co. (JPM) $66.00 -2.00%

Travelers Company Inc. (TRV) $112.30 -1.82%

Procter & Gamble Co. (PG) $74.66 -1.71%

3M Co. (MMM) $156.34 -1.70%

Boeing Co. (BA) $142.52 -1.70%

General Electric Co. (GE) $30.15 -1.70%

Nasdaq 100 - Risers

Liberty Interactive Corporation - Series A Liberty Ventures (LVNTA) $43.76 +3.94%

JD.com, Inc. (JD) $28.78 +3.23%

Liberty Media Corporation - Series C (LMCK) $40.34 +1.84%

Liberty Media Corporation - Class A (LMCA) $41.71 +1.66%

Verisk Analytics Inc. (VRSK) $71.93 +1.51%

Activision Blizzard Inc. (ATVI) $35.03 +1.33%

Dish Network Corp. (DISH) $63.00 +0.90%

Viacom Inc. Class B (VIAB) $49.79 +0.89%

Electronic Arts Inc. (EA) $71.65 +0.49%

Charter Communications Inc. (CHTR) $192.00 +0.42%

Nasdaq 100 - Fallers

Seagate Technology Plc (STX) $34.08 -5.65%

Skyworks Solutions Inc. (SWKS) $75.83 -4.13%

Biomarin Pharmaceutical Inc. (BMRN) $106.80 -3.91%

Fastenal Co. (FAST) $38.65 -3.88%

Amgen Inc. (AMGN) $150.98 -3.75%

Garmin Ltd. (GRMN) $36.28 -3.59%

Netflix Inc. (NFLX) $108.92 -3.49%

Mylan Inc. (MYL) $43.20 -2.90%

Celgene Corp. (CELG) $109.02 -2.84%

Tesla Motors Inc (TSLA) $212.94 -2.80%