The market was remarkably bored about most of what the Fed had to say about the results of the FOMC. A close reading of the minutes shows nothing new. The economy is very modestly better. The turn for the better will be slow and painful. Housing may be getting a tiny bit better. Rates will stay near zero. The only statement which may not have been expected by almost everyone is that the agency will continue buying mortgage-backed and federal debt into the first quarter of next year.
The lack of enthusiasm showed as the major indices traded fairly flat. Today's unofficial numbers:
Dow 9,749.31 -80.56 (-0.82%)
S&P 500 1,060.90 -10.76 (-1.00%)
Nasdaq 2,131.42 -14.88 (-0.69%)
Very few stocks of any note made significant moves. Ford Motor Company (NYSE: F) was up 5% to $7.40 on news that it would launch a new small car in India and that US sales were improving.
CIT Group, Inc. (NYSE: CIT) fell 9% to $1.67, but that was due to profit taking from yesterday's run-up.
AMR Corporation (NYSE: AMR) fell 7% to $7.88 on news that it was raising money by issuing notes and shares. The specter of dilution panicked the airline's current holders.
As usual, a freak biotech or two made big moves on news about drug trials, most if it premature in terms of whether the firms will make money. Those playing the biotech roulette wheel pushed Keryyx Biopharmaceuticals (NASDAQ: KERX) up 14% on data about its kidney drug. The fact that the stock has a 52-week low of $.09 says it all.
Douglas A. McIntyre is an editor at 24/7 Wall St.
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