This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Market Morning: Fed Inaction Dents Stocks, Gold

Stocks in this article: MFGLQ.PKAVP

NEW YORK ( TheStreet) -- The Federal Reserve's inaction on Tuesday has pushed global stocks mostly lower Wednesday.

European shares were lower, while U.S. futures suggested Wall Street would open with moderate gains.

Asian stocks closed lower. Japan's Nikkei 225 index fell 0.4% to finish at 8,519.13. In China, the benchmark Shanghai Composite Index fell 0.9% to 2,228.53, the lowest closing since March 2009.

On Tuesday, the Fed issued some warnings but gave no indication that another round of quantitative easing was on the way anytime soon to help boost the U.S. economy.

The Fed left rates unchanged -- at zero to 0.25% -- during its last meeting of 2011 amid signs suggesting that "the economy has been expanding moderately, notwithstanding some apparent slowing in global growth."

The Fed warned that the unemployment rate remains elevated despite indications of some improvement in the labor market.

The Dow Jones Industrial Average finished down 66 points, or 0.6%, at 11,955. The S&P 500 fell 0.9% and the Nasdaq Composite declined 1.3% on Tuesday.


Gold prices were in free fall Wednesday, down as much as $25, as the U.S. dollar index broke above $80. The Fed offered no big bazooka Tuesday, giving no hints of quantitative easing. The news propped up the dollar, which was already strong against the euro.

The euro also was struggling to hold up after weak bond auctions in Italy and Germany. Italy's borrowing costs rose while Germany's fell but both countries saw weak demand. Mihir Dange, founder of Arbitrage, said the line in the sand for him would be $1,535 an ounce.

"We break under that you have to get short," Dange said.

-- Alix Steel


CME Group Executive Chairman Terrence Duffy said in testimony Tuesday that Jon Corzine knew that segregated customer funds had been transferred "to the firm's broker-dealer accounts" when Corzine served as CEO of MF Global (MFGLQ.PK).

MF Global filed for bankruptcy on Oct. 31. Corzine resigned on Nov. 4.

Duffy told a Senate panel that he had information that Corzine knew about a transfer of $175 million from customer accounts. Corzine told a House committee last week that he was "stunned when I was told on Sunday, October 30, 2011, that MF Global could not account for many hundreds of millions of dollars of client money."

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,827.75 +12.81 0.07%
S&P 500 2,072.83 +5.80 0.28%
NASDAQ 4,787.3170 +29.0650 0.61%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs