Stocks End Higher as Fed Fuels Optimism

Investors let out a sigh of relief and pushed stocks higher following the Federal Reserve's annoucement . Anxiety over the central bank's take on the economy kept stocks lower earlier in the week. Major stock market indicators surged about 2 percent, including the Dow Jones Industrial Average, which gained 120 points to reverse a sharp slide on Tuesday. Stocks rallied during morning trading as investors scooped up bargain stocks. Financial and tech shares posted sizeable gains. United Technologies (UTX), Genworth Financial (GNW), and Hartford Financial Services Group (HIG) were some of the biggest gainers. Homebuilder stocks joined the market rally following good news from Toll Brothers, Inc. (TOL). In other positive housing news, the median home price rose 4% in the quarter versus the first quarter of 2009. U.S. light crude oil for September delivery rose $1.19 to $70.64 a barrel on the New York Mercantile Exchange.

Federal Reserve Concludes Meeting

After meeting for two days, the Federal Reserve has issued its opinion about the current state of the economy. The good news is that the Fed sees signs of an economic recovery. "Information received since the Federal Open Market Committee met in June suggests that economic activity is leveling out."

Video - Fed Decision: Rates Unchanged

Some important points from the meeting:

•  Key interest rates will remain at a record-low range of zero percent to 0.25 percent

•  Treasury buying will gradually slow down and eventually end in October

•  No changes will be made to programs aimed to push down mortgage rates

•  Fed is confident that its low rates and other aggressive actions so far will continue to help bolster the economy

Video - Reaction to the Fed's Decision

Parsing the Fed: How the Statement Changed

According to a survey excerpted in The Wall Street Journal, a majority of economists now believe that Ben Bernanke's stimulus policies were successful. Should he be able to keep his job ?

Central banks must time a 'good exit'

The Rocky History of Fed Independence

Corporate New Making Headlines

The days of secret bank accounts are numbered for U.S. taxpayers. The U.S. and Switzerland settled a Justice Department lawsuit against UBS AG (UBS) seeking the names of Americans suspected of evading taxes through 52,000 secret Swiss accounts. Specifics regarding the agreement have not been released to the public yet.

The companies that make some of those delicious treats in your fridge and cabinets are not that optimistic about the future. First up, Sara Lee's (SLE) fourth-quarter sales fell short of Wall Street's expectations. This is the third straight quarter that this has occurred. Looking ahead, the company expects adjusted fiscal 2010 earnings between 84 and 90 cents a share. Nestle SA followed the same path and reported some disappointing sales. The world's largest food company withdrew its revenue target and posted sales below analysts' estimates. Shares of both companies took a big hit in response to the news.

Macy's (M) second-quarter profit report reiterated consumers' reluctance to purchase anything not deemed as essential. Despite the decline in profits, the company is confident that sales will rebound and as a result it raised its full-year outlook .

American International Group Inc. (AIG) unloaded its Hong Kong finance business to a Chinese bank for $70 million in cash and $557 million in debt.

Dribs and drabs from AIG's fire sale

Wall Street Ought to Do AIG Deals Pro Bono

Toll Brothers Inc.'s (TOL) stock jumped after the luxury homebuilder posted its first annual increase in signed contracts in four years. This may be another sign that the housing market has finally bottomed out.

Other Juicy Tidbits

You missed an opportunity to snatch up a 52-inch flat screen television for the low price of $9.99. That's right, a television that would typically be priced at about $1,700! Unfortunately, Best Buy (BBY) made an online pricing error and will not be honoring the price.

Why Unemployment (Probably) Won't Hit 10 Percent

As expected, CFO Frank DiPascali pleaded guilty and opened the door to a wider investigation of Bernard Madoff's deeds.

Video - Who Is Frank DiPascali?

There have definitely been some winners and some losers during this recession. If you had to choose a winner, who would it be?