Dow Reaches 2010 High as Federal Reserve Announces QE2 Plan (F,TWX)

Markets finish volatile day with small gains across the board as the Federal Reserve announces their plan to stimulate the recovery of a sputtering economy. The Fed will sell buy over $600 billion in short and long term bonds over the next eight months that could reach upwards of $900 billion in costs. This news comes a day after key mid-term elections were conducted, resulting in Republican party taking some control away from the Democratic party. In corporate news, General Motors finalized their IPO plan intended to raise $13 billion to go toward paying back the government. New auto sales hit their highest point last month, besides the government mandated Cash for Clunkers program, with sales of new Ford (F) vehicles increasing 20%. Now that two key events perceived to have a high impact on the economy have finally taken place, investors will look to gauge reactions of the markets over the coming days.

Word on the Street

• The Federal Reserve announces their plan to stimulate the recovery with quantitative easing of $600 billion in treasury purchases.
• Republicans take control of the House of Representatives, as expected, and Democrats hold onto the Senate, as outsiders predict gridlock.
• Auto sales rose to their highest point in two years in the month of October, as Ford (F) sales increased nearly 20%.
• General Motors finalized their $13 billion stock offering to help payback their controversial government bailout nearly two years ago.
• MGM Studios, producer of such films as the James Bonds series, officially filed for bankruptcy and will be taken control of by Spyglass Entertainment.
• Time Warner Cable (TWX) reported higher than expected earnings courtesy of higher licensing and advertising revenue than had originally been expected.
• Breweries such as AB InBev (BUD) and Molson Coors (TAP) benefit despite less beer drinking due to higher prices, lower costs, and sell offs of premium brands.
• Hot Chinese IPO Jinko Solar (JKS) has tripled it’s original share price since May – how high can the Asian manufacturer rise?

Interesting Tidbits

• Now that the Fed has made their long anticipated move, what does it mean for you’re personal finances?
• There may be a full two months left in the year, but check out a few tips to begin considering to help lower your tax burden in April.
• With technology becoming more widespread, so are online universities offering degrees. Be cautious if taking this route – you may be getting an education, but there’s a chance it won’t be acknowledged.

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