News Headline Summary

US EQUITY WRAP

The DJIA and the Nasdaq 100 settled in negative territory in a day of price swings, retracing large gains seen after the FOMC rate announcement, and the S&P 500 inched up to post a gain for the sixth consecutive day, the longest since a seven session streak that ended on March 15th. In the main event of the day the FOMC kept rates unchanged but announced a new stimulus plan, the latest attempt by the Fed to boost the country's struggling economy. A breakdown of the FOMC rate decision and it’s implications can be found on the RANsquawk website. The move to the downside was sparked by comments from Fed’s Bernake that hitting targets as dictated by the Evans Rule will not automatically trigger tightening, meaning that the duration of the stimulus measures is uncertain and might end sooner than initially anticipated. In terms of stocks Aetna were among the best performers in the S&P seeing gains of 4% after releasing a better than expected 2013 earnings estimate. However considerable moves to the downside were seen in Wal-Mart who weighed heavily on the Dow falling 2.7% following the Indian government's announcement of an inquiry into the company's lobbying practices. Also seeing significant downside were Eli Lilly who dropped 2.8% after news that they would be conducting an added study for an experimental Alzheimer’s drug. Finally, the DJIA finished down 0.02% at 13245.45, the S&P 500 finished up 0.05% at 1428.50 and the NASDAQ 100 finished down 0.28% at 2674.57.

12 Dec 2012 - 16:12 - Equities - Source: RANsquawk

Subscribe Now to RANsquawk

Click here for a 1 week free trial

RANsquawk provides audio news and commentary for over 15,000 professional traders and brokers worldwide. Services include: