This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Dow Closes Higher; Fed Keeps Rate Same

NEW YORK ( TheStreet) -- The major market averages recaptured a portion of their prior day's losses Wednesday afternoon even as another ratings downgrade in the eurozone kept sovereign debt worries in the headlines , though the Federal Open Market Committee made no move on its key interest rate.

The Dow added 53 points, or 0.5%, to 11,045. The S&P 500 gained 8 points, or 0.7%, to 1191, though the Nasdaq went ahead by only a fraction of a point, or 0.01%, at 2472.

Hewlett-Packard (HPQ) made news after the closing bell, announcing it will acquire Palm (PALM) for $1.2 billion, according to a release. Palm shareholders will get $5.70 a share, or a 23% bump over Wednesday's closing price, while it's believed the deal will close during HP's third quarter. After a momentary halt in trading, shares of Palm were climbing 27% higher in the extended trading session.

S&P lowered Spain's credit rating by one notch to AA, from AA+ with a negative outlook Wednesday, a day after downgrades to Greece and Portugal triggered a global selloff as investors feared a worsening eurozone debt crisis.

Overseas, Hong Kong's Hang Seng lost 1.5%, and Japan's Nikkei fell 2.6%. The FTSE in London slipped 0.3%, and the DAX in Frankfurt lost 1.2%.

Stocks faltered after news of the downgrade surfaced but stocks resumed higher with the Dow climbing solidly into positive territory, which Lawrence Creatura, vice president and portfolio manager at Federated Clover Investment Advisors, credited to a reporting season characterized by good earnings and even better outlooks.

"Another thing that may be going on is capital may be departing Europe as anxiety over European contagion increases -- that could be another positive factor for markets," Creatura added.

But Ryan Detrick, senior technical strategist at Schaeffer's Investment Research, was less enthused about the mild uptick in most stocks, noting the heavy 200-point Dow drop on Tuesday along with today's light trading volumes.

"Yes, we shook off the Spain news, but I don't think it was the world's most impressive bounce," he said. "The Fed didn't rock the boat, so to speak, which is another positive. But the bigger picture for me: I don't think it's that impressive considering the steep drop we saw yesterday."
1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
WLP $136.01 1.43%
DOW $46.69 0.00%
GD $134.20 0.00%
HMC $26.01 0.00%
NOC $186.49 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs