US Market Updates
11/4/2009 2:56 PM ET
(RTTNews) -
Stocks have seen some wild swings but are building on earlier gains in mid-afternoon trading on Wednesday after the Federal Reserve announced that it would leave its key interest rate unchanged. The major averages are all in positive territory, looking to offset recent losses.
The Federal Open Market Committee, the policy-setting arm of the Federal Reserve, said it was leaving its target for the federal funds rate at a range from zero to 0.25 percent. The central bank also reiterated its assessment that "exceptionally" low rates will continue for an "extended period." The vote for the rate decision was unanimous.
Going into the announcement, the Fed was expected to leave rates unchanged, though there had been some expectation that the central bank would start to pave the way for an eventual rate hike down the road.
This morning, equities saw notable upside as traders reacted positively to relatively tepid economic data. The Institute for Supply Management said that activity in the service sector grew for the second consecutive month in October, although the pace of growth unexpectedly slowed.
Separately, Automatic Data Processing reported that private sector employment continued to decrease in October, with the pace of job losses slowing for the seventh consecutive month.
The major averages have seen substantial fluctuation following the rate decision but are now seeing notable upside, reaching fresh intraday highs. The Dow is currently up 143.81 at 9,915.72, the Nasdaq is up 19.85 at 2,077.17 and the S&P 500 is up 14.35 at 1,059.76.
Dow Components
A majority of the Dow components are on the rise, contributing to the triple digit gain being shown by the blue chip index.
Merck (MRK) is helping to lead the Dow higher, climbing by 6.8 percent on the day. The stock is recovering from yesterday's two-month closing low.
Disney (DIS), Microsoft (MSFT), McDonald's (MCD), Boeing (BA) and Intel (INTC) are also on the rise, among many others. Notably, the gain by McDonald's has the stock poised for its best closing level in five months.
Meanwhile, Kraft (KFT) is the only decliner in the Dow, falling by 2.5 percent, offsetting some recent gains. The pullback by shares of the food giant comes after its third quarter revenues failed to meet Wall Street expectations.
Sector News
Health insurance stocks are continuing to show strength in mid-afternoon trading, as Republican victories in gubernatorial elections in Virginia and New Jersey have generated optimism that more liberal healthcare reforms will face increased opposition on Capitol Hill.
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