Closing Bell: Market Ends 3-Day Rally Despite Fed Decision

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Thursday, June 13, 2013. Photographer: Jin Lee/Bloomberg *** Local Caption ***
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Market Ends Three-Day Rally: Stocks ended Wednesday trading lower, despite a decision by the Federal Reserve to keep its bond-buying program in place. The Dow Jones industrial average (^DJI) fell 206 points, while the S&P 500 (^GSPC) lost 23 points and the Nasdaq (^IXIC) gave up 39.
  • The Fed said it will maintain the pace of its bond purchases -- $85 million a month -- for now, even as it offered a more optimistic outlook for the U.S. economy and job market. In a statement, issued after the Fed's two-day policy meeting, the Fed said the economy is growing moderately, and that the risks to recovery it warned of last fall had diminished. The Fed also forecast that the nation's jobless rate would fall to 7.2-to-7.3 percent by year's end and drop as low as 6.5 percent by the end of 2014.
  • In earnings news, FedEx (FDX) reported its fiscal fourth-quarter profit tumbled 45 percent even as the delivery company beat earnings expectations. What's more, the company's forecast for the next 12 months was shy of Wall Street forecasts, but shares ended the day higher, up more than 1 percent to $100.54.
  • George Zimmer, founder and longtime spokesman for The Men's Wearhouse (MW) is out of a job. The Fremont., Calif.-based company early Wednesday issued a terse statement announcing Zimmer's departure but offered no clue as to why it had fired the executive chairman. Zimmer shot back, telling CNBC that he was fired after he expressed concerns to the board about the company's direction and that the board "inappropriately has chosen to silence my concerns."
  • Securities and Exchange Commission Chairman Mary Jo White is taking a stronger stance against wrongdoers, saying the SEC will now demand admissions of wrongdoing in cases involving serious fraud or harm to investors, and where "it's very important to have that public acknowledgement and accountability."
  • A court in Milan has convicted designers Domenico Dolce and Stefano Gabbana of tax evasion, for failing to declare $1.3 billion in income to authorities. The court handed both men a suspended sentenced of 20 months in jail. Neither Dolce nor Gabbana were present in the court. Both executives have denied the charges, which had been thrown out two years ago by another judge. A spokesman for privately held Dolce & Gabanna declined immediate comment, Reuters reported.
  • Watch for more earnings Thursday, as Kroger (KR), Pier 1 Imports (PIR) and Rite Aid (RAD) are all due to report before U.S. markets open. After the closing bell, watch for earnings from Oracle (ORCL).
  • On the economic calendar, there are several key reports due Thursday, including existing home sales, weekly jobless claims and leading indicators.
The Associated Press contributed to this report.

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12 Comments

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jagentmike

if Ben B announces his favorite flavor of ice cream the market goes down.

June 19 2013 at 9:04 PM Report abuse rate up rate down Reply
Phil324

The news media continues to report miss information. From what I understand, the federal reserve will continue the same policies until the mid 2014. Something is definitely wrong with the way the stock market reacted. It is probably the wealthy continuing efforts to make the middle class slaves since, the middle neither has the money or the clout to compete with the big boys and or do they have the time to over see the federal government's poor management skills.

June 19 2013 at 7:32 PM Report abuse rate up rate down Reply
1 reply to Phil324's comment
h.hughjardon

According to the lefties, including the feature writers here at Daily Finance, the middle class isn't invested in the markets...just the evil rich 7%.

June 20 2013 at 12:00 AM Report abuse +1 rate up rate down Reply
1 reply to h.hughjardon's comment
sam59USN

And we'll continue to increase our wealth at amazing rates, if the 51% of folks who earn under $75k keep voting for our guys.

June 20 2013 at 9:11 AM Report abuse rate up rate down
nick7917

So, when you print more money the people with money get nervous and sell off? No way! This is only the 500,000th time this has happened. Maybe one day we will have people that are running the treasury that actually understand economics's.

June 19 2013 at 6:43 PM Report abuse +2 rate up rate down Reply
1 reply to nick7917's comment
h.hughjardon

Economics's.....where can a brother get that degree?

June 20 2013 at 12:01 AM Report abuse rate up rate down Reply
Erly Pete

Obviously too many a-hole daytraders with too much time on their hands getting their pantiesinabunch because they can't comprehend good news in any form. Thanks for ruining MY day, you f' in morons. Someone should REALLY rein in your pathetic little minds and get you away from the market, pronto.

June 19 2013 at 5:54 PM Report abuse rate up rate down Reply
2 replies to Erly Pete's comment
Becki

Not that I don't agree about the day traders, but what good news?
Look around... Ya the Gov says... and you believe? Get serious. Another friend and neighbor, just got cut back to 4 days and 30 hrs a wk. This country is in bad shape on many levels... The gov can and does lie, so do polls, and stats can be fixed. Reality check! Look around, talk to real people. Good luck

June 19 2013 at 7:57 PM Report abuse +2 rate up rate down Reply
sam59USN

Jealous of our success

June 20 2013 at 9:11 AM Report abuse rate up rate down Reply
Jim & Mary B

I dislike your new desktop, its terrible, and I am going to be a short time before I start looking around. I have been with AOL for a loang time but I hate what you have done to your site. Jim B

June 19 2013 at 5:18 PM Report abuse +2 rate up rate down Reply
1 reply to Jim & Mary B's comment
Becki

I agree. AOL is doing to much trying to keep up with the Jones ( so to speak) and not enough trying to please their members!!! It is not just the desk top it is , the mail, load times for everthing, HP, ... I miss the old AOL just like I miss the Old America. God help this country and...

Take care!

June 19 2013 at 7:51 PM Report abuse +3 rate up rate down Reply
1 reply to Becki's comment
Hey Razor

It's so different now than 30 years ago when I was in HS. Hardly anyone seems to notice or care about what was lost and what we continue to lose today.

June 20 2013 at 12:51 AM Report abuse rate up rate down
Frank

Oh my

June 19 2013 at 5:16 PM Report abuse rate up rate down Reply
jdykbpl45

Really?

June 19 2013 at 5:03 PM Report abuse +2 rate up rate down Reply