Fed Decision Boosts Dow To Another Record
The stock market got a slight boost from the Federal Reserve’s decision to do nothing on Wednesday, giving the Dow Jones industrial average its sixth straight record close.
The Dow average finished 8.20 points higher at 6,274.24. The closely watched average has closed higher every session since the day before the election.
Perhaps more influential on the market, analysts said, was an apparent recovery in mutual fund inflows early this month once the uncertainty of the election passed. The Dow has risen more than 250 points so far in November.
Stocks wavered through much of the day with investors wary of making any sudden moves until Fed policy-makers finished meeting at midafternoon. While economists had widely expected the Fed to stand pat, the Dow rose 20 points in the moments following the central bank announcement that the meeting had ended without a rate increase.
“I haven’t heard anybody who thought there was going to be any action,” Eric Miller, chief strategist at Donaldson, Lufkin & Jenrette Securities in San Francisco said of the Fed meeting. “A lot of people weren’t paying attention.”
Advancing issues outnumbered losers by about 8 to 7 on the New York Stock Exchange.
Some of the stocks that moved substantially or traded heavily Wednesday:
NYSE
Westinghouse Electric, down 7/8 at 19-3/4.
The Pittsburgh-based conglomerate said it would split into separate broadcast and industrial companies in a realignment that will eliminate about 1,100 jobs.
Dillard Department Stores, down 3-3/8 at 29.
Federated Department Stores, down 1-1/8 34-5/8.
Dillard, based in Little Rock, Ark., reported a 38 percent drop in third-quarter earnings, well below analysts expectations. Cincinnati-based Federated said its third-quarter earnings increased despite the costs of absorbing the Broadway Stores acquired last year.
Wal-Mart, down 1-1/8 at 24.
The stock sagged again following Tuesday’s report of third-quarter profits that fell at the low end of forecasts.
NASDAQ
Dell Computer, up 3-3/4 at 92-3/8.
The company said its third-quarter earnings rose 92 percent from a year ago as it continued to grow faster than the overall personal computer industry.
Edmark, up 3-13/16 at 15-1/4.
IBM agreed to acquire the maker of educational software titles in a deal valued at $102.3 million.
Medex, up 8 at 23-1/4.
Furon agreed to acquire the rival medical device maker for $23.50 a share, or about $160 million. Medex makes disposable products and components for life-support systems. Furon specializes in shunts, catheters and tubing.