Stocks Drift Lower as the Fed Leaves Policy Unchanged (BAC, ZNGA)
Stocks attempted to rebound after Tuesday's large drop but drifted lower overall. Some positive movement was made after housing data signaled continued economic recovery - home sales rose 5.7% to a two-year high. The Fed had their latest policy meeting today but did not announce any new changes or plans of action, but reiterated their efforts to push down US mortgage rates. The US federal court sued Bank of America (BAC) over alleged mortgage fraud at Countrywide Financial several years ago. Among those announcing earnings today were Yelp (YELP), Boeing (BA) and Zynga (ZNGA) after hours.Facebook (FB) reported revenue as well and saw shares soar over 20% after announcing a 32% surge in revenue. Also on Wednesday Greece was granted a two-year extension to meet its bailout program terms. Oil fell for the fifth day in a row and ended below $86 a barrel.
Word on the Street
- US files lawsuit against Bank of America (BAC) on Wednesday over civil mortgage fraud.
- The Fed appears slightly upbeat during talks but leaves policy and mortgage rates unchanged.
- US home sales have risen 5.7% to 389,000, the most since April 2010, spurring economic recovery.
- Yelp Inc. (YELP) shares jump after exceeding sales estimates and announcing its plan to acquire Qype GmbH for $50 million.
- Apple (AAPL) sees a surge in resales of old iPads after unveiling the iPad Mini.
- Zynga (ZNGA) to report after the bell on Wednesday, investors remain cautious.
- Bristol-Myers Squibb Co (BMY) misses expectations for quarterly sales and earnings.
- Among the top ten strategic technology trends for 2013 are mobile device battles and apps.
- Video - is Facebook (FB) growing fast enough that its shares are finally worth buying?
Published on Oct 24, 2012By InvestorGuide Staff