Stocks mixed on Fed news

Dow up slightly as other major indexes dip

The Associated PressSeptember 22, 2010 

— Stocks got a brief bump following word that the Federal Reserve is ready to do more to help the economy. Still, they ended mostly lower Tuesday after the central bank disappointed some investors by not taking any bold new actions.

Treasury prices rallied as investors saw the Fed's announcement as a signal that more bond purchases were on the way.

The yield on the 10-year Treasury note fell sharply to 2.58 percent from 2.70 percent the day before, while its price jumped $1.03 to $100.34. The yield is a common benchmark for setting interest rates on corporate debt and mortgages.

The effect of the Fed's statement, which came after a one-day meeting of its interest rate committee, had only a temporary effect on stocks. Hopes had been building that Tuesday would bring news of a specific new bond-purchasing program, and disappointment ensued when one didn't materialize.

Stocks had been trading lower ahead of the Fed's announcement and rallied briefly after the news came out. A late slump erased most of the day's gains from broad market indicators, while the Dow Jones industrial average, which tracks 30 large companies, ended with a meager gain.

The Dow rose 7.41, or 0.1percent, to close at 10,761.03. It's still up 7.5 percent for September, an unusually large gain for a month that is historically weak for stocks.

The Standard & Poor's 500 index slipped 2.94, or 0.3 percent, to 1,139.77, while the Nasdaq composite fell 6.48, also 0.3 percent, to 2,349.35.

The S&P is still up 8.6 percent for the month, the Nasdaq 11.1 percent.

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