Saturday, December 31, 2011

Stocks slide on Fed entrenchment

Published: Dec. 13, 2011 at 4:55 PM

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NEW YORK, Dec. 13 (UPI) -- Stocks on Wall Street slid Tuesday after the U.S. Federal Reserve said it would keep its monetary policies intact for another month.

The Fed said it would keep its federal fund rate at zero to 0.25 percent and maintain the size of its securities portfolio by purchasing Treasury notes as its holdings mature. The Fed also said it would continue trading in short-term notes for long-term, a move meant to convince businesses that rates for long-term borrowing would remain low.

An up and down day on Wall Street ended in a selling mood, as afternoon gains faded fast when the Fed's position was announced.

By close of trading, the Dow Jones industrial average was down 66.45 points, or 0.55 percent, to 11,954.94. The Standard & Poor's 500 index shed 10.74 points, or 0.87 percent, to 1,225.73. The tech-heavy Nasdaq composite index gave up 32.99 points, or 1.26 percent, to 2,579.27.

On the New York Stock Exchange, 868 stocks advanced and 2,181 declined on a volume of 3.8 billion shares traded.

The benchmark 10-year treasury note rose 14/32 to yield 1.967 percent.

The euro fell to $1.3028 from Monday's $1.3188. Against the yen, the dollar rose to 78.01 yen from Monday's 77.93 yen.

In Tokyo, the Nikkei 225 index shed 1.17 percent, 101.01points, to 8,552.81.

In London, the FTSE 100 index added 1.15 percent, 62.29, to 5,490.15.

Source: http://www.upi.com/Business_News/2011/12/13/Stocks-slide-on-Fed-entrenchment/UPI-74121323792825/

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