Major stock indexes close broadly lower, down between 0.7% and 1%, at the bottom of the day's trading range. Stocks gained in the first minutes following the Federal Reserve's statement holding interest rates at record lows. Stocks eventually then turned mixed in late afternoon trading and finally, broadly lower heading into the final bell. Energy shares fell and tugged on the broader market as oil prices tumbled nearly 4%.
Stocks turned to volatile trade in the wake of the Federal Reserve's policy statement.
Federal Reserve officials held rates steady as was widely expected. Members noted the improving economy. Fed officials see signs that growth could remain slow for a long time. They also made a change to debt-buying plans.
In a statement issued at the conclusion of a two-day meeting, the Fed announced that it has extended its purchase of mortgage-backed securities and agency debt into the first quarter of 2010. Those programs were officially expected to end in December.
As expected, the Fed kept its target for its federal funds rate set at a range of zero to 0.25%. Most economists are betting that rates remain this low into 2010.
Crude oil tumbled, shedding nearly 4% and falling below $70 a barrel on the New York Mercantile Exchange. Crude fell with stocks and after the government reported a jump in crude oil and gasoline inventories as demand crumbled following the end of the summer driving season. Benchmark crude is down $2.65 at $69.11 a barrel on the November contact. The Energy Information Administration said U.S. petroleum inventories rose 2.8 million barrels in the week ended Sept 18, while gasoline inventories gained 5.4 million barrels, and distillate stockpiles, mainly diesel and heating oil, rose 3 million barrels.
Analysts polled by Platts, the energy information arm of McGraw-Hill Cos., had expected crude inventories to fall by 2.25 million barrels, but the EIA's report was in line with a separate estimate by the American Petroleum Institute. The API said crude supplies would fall by hundreds of thousands of barrels, as well.
Consumer products maker General Mills Inc (
GIS) provided some early lift with its earnings results. The company was helped by strong sales in the United States and lower commodity costs.
In technology, Seagate Technology (
STX) traded mixed after it boosted its quarterly forecast on better-than-expected sales. Chip maker Xilinx (
XLNX) gained after the company lifted its Q2 sales guidance.
NYSE down 82.3 (1.2%) to 6,964.74.
-DJIA down 80 (0.8%) to 9,749.
-S&P 500 down 10.8% (1%) to 1,061.
-Nasdaq down 14.9 (0.7%) to 2,131.
GLOBAL SENTIMENT
Hang Seng down 0.49%
Nikkei down 0.70%
FTSE down 0.06%
UPSIDE MOVERS
(+) GIS beats with Q1, raises FY EPS view to above Street mean estimate.
(+) F unveils new small car in India.
(+) SOL buying Dynamic Green Energy in stock deal, guides for Q3 revenue in range that straddles Street.
(+) AAPL gets S. Korean approval to sell iPhone there; company has no immediate plans: reports.
(+) OPXA triggers milestone payment.
(+) QTWW gains amid Energy Dept. loan for Fisker Automotive; Fisker uses QTWW's PHEV powertrain capabilities.
(+) LOW gets analyst upgrade.
(+) XLNX expects sequential sales rise.
(+) HYGS inks new order.
(+) ILI reports positive study results for genetic test's impact on weight loss.
(+) ASTI inks supply pact with TurtleEnergy.
(+) PALM prices shares.
(+) BRKR prices shares.
(+) CX prices shares.
(-) STX continued in two-sided trade; had posted narrow evening gain after initial decline; guided for Q1 revs at or above high end of guidance.
(-) ONXX reports statistically significant study results for Nexavar in combo with chemotherapy.
(-) ETFC completes share offering.
(-) AZO reports Q4 EPS topping year-ago quarter, missing Street.
(-) AMR prices shares, announces private offering of notes.
(-) MAR sees Q3 pre-tax impairment charge of $760 mln.
(-) CPN selling shares in secondary offering.
