Federal Reservations

SAN FRANCISCO (MarketWatch) -- U.S. stocks dropped sharply Wednesday, with the major indexes notching deep losses in the last hour of trading, in the wake of a Federal Reserve statement that was largely in line with market expectations. The Dow Jones Industrial Average lost 283.82 points, or 2.5%, to 11,124.84. The S&P 500 fell 35.33 points, or 2.9%, to 1,166.76. The Nasdaq Composite lost 52.05 points, or 2.01%, to 2,538.19. The Federal Reserve announced a $400 billion debt swap that will extend the average maturity of the securities it holds, a bid to lower long-term rates that had been widely expected. "The Fed disappointed in a big way. They had a chance to go big and they wimped out," said Keith Springer, president of Springer Financial Advisors in Sacramento, Calif.

Originally from MarketWatch

Will the Fed spoil the earnings party on Wall Street? Ken Grant, wealth advisor at Waterstone Private Wealth Management, doesn't think so. He says the Fed has laid its cards on the table, and he expects it will continue with its current strategy. Grant tells MarketWatch Radio's Larry Kofsky the Fed's new transparency - in the form of Chairman Bernanke's post-statement news conference - will make for "great banter," but provide no surprises to the markets.

Originally from MarketWatch

Will the Fed spoil the earnings party on Wall Street? Ken Grant, wealth advisor at Waterstone Private Wealth Management, doesn't think so. He says the Fed has laid its cards on the table, and he expects it will continue with its current strategy. Grant tells MarketWatch Radio's Larry Kofsky the Fed's new transparency - in the form of Chairman Bernanke's post-statement news conference - will make for "great banter," but provide no surprises to the markets.

Originally from MarketWatch

The last FOMC meeting for 2010 is likely to end without any surprises. The Fed is expected to maintain the current band (0%-25%) for the federal funds rate. There has been significant criticism about the $600 billion purchase of Treasury securities to provide an extra lift to economic activity and bring about a lower unemployment rate. The Fed projected lower interest rates and a depreciation of the dollar as a result of the second round of purchases of securities, termed as QE2. However, yields have risen since the announcement of QE2 on November 3. The 10-year Treasury note yield closed at 3.32% on December 10, the highest since June 10, 2010 (see Chart 1). Mortgage rates have risen close to 40bps since November 3 (see Chart 1).

Originally from The Market Oracle

Commodities – Energy
Crude Oil Rises as China Manufacturing PMI Surprises
Crude Oil (WTI) – $81.82 // $0.39 // 0.48%
Commentary: Crude oil prices are higher in overnight trade as the commodity gets a boost from strong manufacturing figures from China and a general increase in risk appetite ahead of this week’s much-anticipated Federal Reserve meeting on November 3rd.
While financial market commentators remain obsessed about the Fed meeting, we have explained that the primary reason for the … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Originally from DailyMarkets.com

WASHINGTON (Reuters) - U.S. employment fell for a third straight month in August, but the drop was far less than expected and private hiring surprised on the upside, easing pressure on the Federal Reserve to prop up economic growth.

Originally from Reuters: Business News

According to the Philadelphia Federal Reserve Bank, an index tracking general manufacturing business conditions registered a -7.7 in August, suggesting contraction in the area's factory ranks.

Originally from TheStreet