Markets Decrease Wednesday After Fed Meeting as Tech Stocks Fuel Drop (ADBE, MSFT)

Stocks fells Wednesday after the Fed appeared to be open to another bout of stimulus packages to aid the struggling economy. The Fed’s stance weighs heavily on investor confidence despite the previous three week rally seeing the S&P 500 rise 9%. The markets were also depressed due to disappointing earnings announcements from Adobe System (ADBE), whose share price plummeted 19.7%, and Microsoft’s (MSFT) dividend increase announcement that left much to desire. In more upbeat news, cereal maker General Mills (GIS) reported better than expected quarterly profit propelling shares to rise 3.8%. All major markets fell today. The Dow decreased 21.72 to 10,739.33, the NASDAQ by 14.80 to 2,334.55, and the S&P by 5.50 down to 1,134.28. Treasuries fell as well, with the 10 year bond falling by 0.46% to 2.548%. Gold hit another record high, up $17.80 to $1,290.20.

Word on the Street

• Markets decline on news Fed may be willing to enact another stimulus; tech giants weigh as well.
• Gold futures set another record after Fed meeting reignited fears of deflation.
• Abbot Laboratories (ABT) will recall Similac-brand powder baby formula due to concerns of bug infestation.
• Movie rental store Blockbuster expected to announce Chapter 11 bankruptcy within the next few days.
• Miscrosoft (MSFT) announces dividend increase of 23%, but shares fall 1.2% on the day.
• Prices of crude oil dip after Energy Department says oil inventories increased by 1 million barrels last week.
• Shares of cereal producer General Mills (GIS) fall after revenue slips even though earnings increase.
• The dollar falls to its lowest level against the euro after Portugal is able to sell bonds worth a little less than $1 billion.

Interesting Tidbits

• Don’t trust banks anymore after the recession? Try borrowing (and lending) with one of these peer to peer lending programs.
• Sometimes it’s possible to be too ambitious. Try taking a step back and pacing yourself with these 14 metrics.
• The world’s oldest man celebrates his 114th birthday today. His only regret? Not being able to serve his country – he was in his 40s when WWI broke out.

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