Equities Roundup: Operation Twist May Not Be Enough For Investors

Equities Editors Desk  |

Despite much of the optimism that investors had in regards to the Federal Reserve announcement of a new round of stimulus or the highly discussed Operation Twist, stocks are edging slightly lower today ahead of central bank's decision. In fact, some market watchers believe that Wall Street has already priced in the impact of Operation Twist, where the Fed sell short-term securities to fund purchases of long-term bonds to keep rates low, and is actually hoping for additional stimulus initiatives to be announced by Fed Chief Ben Bernanke. Republican leaders have voiced their opposition to any additional stimulus by the Fed, but most economists believe that the U.S. central bank should operate outside of the political realm. With the housing market and unemployment rate stagnant with no signs of rebounding any time soon, more pressure has been put on the Fed to respond. The National Association of Realtors said home sales rose 7.7 percent last month, but mostly due to depressed prices from foreclosures. In financials, major banks all fell today as ratings service provider Moody's (MCO) downgraded Bank of America (BAC), Citigroup (C) and Wells Fargo (WFC). Commodities are holding steady with oil and gold prices staying mostly flat.

DJIA: 11,383.04 (-0.22 percent)
S&P 500: 1,196.81 (-0.44 percent)
NASDAQ: 2,601.34 (+0.43 percent)
Russell 2000: 688.05 (-0.28 percent)

In other news:

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