Treasuries reversed earlier session losses and yields have turned sharply lower, with stocks holding positive ground after the Federal Open Market Committee decided today to establish a target range for the federal funds rate of 0 to 1/4 percent.
U.S. Market Watch - 03:00 PM EDT
Stocks are holding near their best levels of the session as we approach the final hour of trade with the Federal Reserve saying it will employ all available tools to promote the resumption of sustainable economic growth and preserve price stability.
In Tuesday's statement, the Fed also said it is "evaluating the potential benefits of purchasing longer-term Treasury securities." When loans to Bear Stearns and American International Group are included, the Fed's balance sheet now tops $2.2 trillion, more than double where it was when Lehman Brothers collapsed in mid-September.
The dollar is getting hit hard against its weighted basket of foreign currencies with the Euro, Yen and British Pound surging further from strong openings.
Despite a strong move higher in the Euro as depicted in the U.S. Market Watch with the Euro CurrencyShares (FXE) $139.78 +1.79%, January Crude Oil (cl09f) looks to settle lower by $0.91, or -2.04% at $43.60 into Friday's termination.
As I type (03:15 PM ET) the NASDAQ-100 Index (NDX.X) 1,235.89 +4.57% once again nears a major level of institutional resistance, but bears look pressured with the Semiconductor HOLDRs (SMH) $18.50 +5.47% finding strength from Intel (NASDAQ:INTC) $15.55 +6.57%, which tries to tear free of the $15.00 strike.
Financials are notably strong with Goldman Sachs (NYSE:GS) $76.58 +15.66% getting a pop after the company reported its first quarterly loss since going public.