Stocks Eke Out Gains

Peter Morici, professor at the University of Maryland School of Business and former chief economist at the U.S. International Trade Commission, said that unfortunately, this week's Fed statement suggested it's through cutting interest rates.

"This only served to further destabilize credit, stock and housing markets, and negate the potential positive effects of its quarter-point reduction in the federal funds rate."

Earnings took a backseat during the last day of the week, even as several big names were reporting results. Chevron (CVX Quote) posted a 26% decline in third-quarter profit, which fell short of estimates. Chevron ended lower by 0.6% at $88.48.

Martha Stewart Living (MSO Quote) posted a narrower-than-expected third-quarter loss, while NYSE Euronext (NYX Quote) topped analysts' expectations for its latest quarter. Still, Martha Stewart declined 5.9% to $12.35, and NYSE Euronext lost 0.5% to $90.46.

Cigna (CI Quote) also exceeded estimates and offered an upbeat forecast on its full-year profits. Duke Energy (DUK Quote) and Viacom (VIA Quote) were better than anticipated with their earnings.

Cigna shed 3.5% to $49.93, while Viacom rose 2.9% and Duke Energy advanced 1.1% to $19.03.

Among research calls, Deutsche Bank upgraded Sprint Nextel (S Quote) to hold from sell, but downgraded Electronic Arts (ERTS Quote) to sell from hold. eBay (EBAY Quote) was downgraded at Bear Stearns.

Sprint rose 3.4% to end the day at $17.15, EA gained 2.9% to $60.46, and eBay tacked on 0.1% to $35.02.

Overseas markets were weak. London's FTSE 100 was down 1.3%, the Paris CAC 40 was off 0.6%, and Germany's Xetra Dax was 0.8% lower. In Asia, Hong Kong's Hang Seng dropped 3.3% overnight, and Japan's Nikkei 225 lost 2.1%.

Crude oil prices were again higher. The December front-month crude contract rose $2.44 in floor trading to close at $95.93 a barrel.