Stocks mixed after Fed hints stimulus to continue

The stock market closed out July with its best monthly gain since January.

The Standard & Poor's 500 index ended the month 4.95 percent higher. That's the biggest increase since January, when it rose 5.04 percent. The Dow Jones industrial average also had its best month since January.

Markets surged in July after Federal Reserve Chairman Ben Bernanke assured investors that the central bank wouldn't pull back on its stimulus program until the economy was strong enough. The central bank is buying $85 billion of bonds a month to keep down interest rates to encourage borrowing and hiring.

Wednesday, the Fed reaffirmed its commitment to support the economy in a statement released after the end of a two-day meeting. The central bank suggested that it's not about to wind down its stimulus.

The Standard & Poor's 500 index ended little changed at 1,685.73. The Dow Jones industrial average ended the day 21.05 points lower at 15,499.54.

The Nasdaq composite gained 0.27 percent to 3,626.37. The index fell just five times during the month and is at its highest level in more than a decade.

Bond yields fell as demand increased for U.S. government debt. -- AP