NEW YORK (TheStreet) -- U.S. stock indices were downbeat Wednesday as the markets were inundated with negative geopolitical and economic news, on top of concerns that the Federal Reserve will be abandoning its accommodative policy sooner than expected. With earnings season winding down, there appears to be less that can distract the markets from the confluence of Wednesday's negative headlines. Read More: Aug. 6 Premarket Briefing: 10 Things You Should Know The Dow Jones Industrial Average was off 0.15% to 16,404.39. The S&P 500 was shedding 0.26% to 1,915.21. The Nasdaq fell 0.61% to 4,327.72. U.S. stocks on Tuesday finished at session lows after being pressured by a ramp-up of tensions in Ukraine. Better-than-expected economic data failed to help the S&P 500 sustain a recovery from last week's worse slump in two years. Time Warner shares were plummeting more than 12.5% to $74.20 after 21st Century Fox withdrew its $80 billion stock-and-cash offer to acquire its long-time rival. News that Time Warner reported earnings of 98 cents a share vs. consensus estimates of 84 cents failed to fuel any share-price strength. A handful of other top corporate headlines were crossing the wires Wednesday. Apple and Samsung agreed to end all patent lawsuits between each other outside the U.S. in a step back from three years of legal hostilities between the world's two largest smartphone makers. Meanwhile, China's government excluded Apple iPads and MacBook laptops from the list of products that can be bought with public money because of security concerns, Bloomberg reported, citing government officials familiar with the matter. Apple shares were down slightly to $94.74. Read More: European and Asian Stocks Retreat on Rising Russia-Ukraine Worries Sprint decided Tuesday to end its pursuit of T-Mobile in the face of stiff opposition from regulators, The Wall Street Journal reported. The company confirmed Wednesday that billionaire entrepreneur Marcelo Claure will be replacing Dan Hesse as CEO and that his first priority will be to continue the build out of Sprint's network. Claure has been as Sprint board member since January and is the founder and CEO of wireless distributor and SoftBank Corp. subsidiary Brightstar Corp. Sprint was dropping 17.03% to $6.05 and T-Mobile was declining 8.73% to $30.95. Groupon was plunging 17.1% to $5.87 after posting on Tuesday a wider second-quarter loss, weighed down by acquisition-related costs and other one-time expenses. Walt Disney said third-quarter net income rose 22%, topping analysts' expectations, as animated hit "Frozen" helped revenue rise 8% to $12.47 billion. Shares were down less than 1% to $86.10. Federal Reserve Bank of Dallas president Richard Fisher said Tuesday evening that the central bank could hike interest rates earlier than the widely expected mid-2015 target if U.S. economic data continue to strengthen. "We are going to have to move the date of liftoff further forward than had been projected," Fisher said on Fox Business Network. Michael Pento, founder and president of Pento Portfolio Strategies, said that the market peaked in the middle of July, and that the selloff has had very little to do with geopolitical events. It has more to do with Fed withdrawal fears, he said. "Those situations didn't matter until tapering brought Fed asset purchases down to $25 billion per month," said Pento. "QE3's end will bring the same reaction as QE's 1 and 2's termination. The S&P 500 dropped 13% and 17% respectively, and I believe this correction will be north of 20%." European and Asian markets fell Wednesday, as a buildup of Russian forces near the Ukraine border sparked fears of an invasion. An unexpected decline in German factory orders also drove the jitters. News that Russia has amassed 20,000 combat-ready troops -- reportedly special forces as well as troops with armor, artillery and air defense capabilities -- on its eastern border with Ukraine raised concerns about imminent military intervention. Russian President Vladimir Putin also ordered his government to retaliate against U.S. and European sanctions, albeit without harming Russian consumers. Factory orders have been suffering in Europe's largest economy, a situation that Berlin's Economics Ministry blames on geopolitical developments and risks. These factors have led to a "certain holding back" on orders. Germany's Federal Statistics Office said Wednesday that factory orders fell 3.2% in June, the greatest drop in two and a half years, after declining by 1.6% in May. Elsewhere, the eurozone's third-largest economy, Italy, slumped back into a recession during the second quarter. GDP was down 0.2% from the first quarter. The Census Bureau reported before the market open that the U.S. trade deficit shrank to $41.5 billion in June, compared with the average estimate of $45.2 billion. Read More: Stock Market Today: U.S. Stocks Finish Near Session Lows as Time Warner Plummets -- By Andrea Tse in New York Follow @AndreaTTse
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