WALL STREET >>> Bulls Nose Out The Bears

DJIA Ekes Out a Win as Fed Stands Pat
The Dow closed slightly higher as policymakers vowed to keep interest rates low

Stocks spent most of the day languishing below the breakeven line, as traders braced themselves for the Federal Open Market Committee's (FOMC) monthly decision on monetary policy. The group's statement hit the Street around 2:15 p.m., with the FOMC reiterating its now-familiar pledge to keep interest rates at exceptionally low levels for an extended period of time. The announcement sent the major market indexes jolting higher -- right in step with sole dissenter Thomas Hoenig's blood pressure, most likely -- and equities spent the session's final hour cautiously exploring positive territory.

"We held the 1,130 breakout on the S&P 500 Index," observed Senior Technical Strategist Ryan Detrick. "But even more important is where we are finding leadership in this market. The consumer discretionary sector has been doing great recently," he explained, "so all the talk about the consumer being tapped out might not play out the way the bears expected."

The Dow Jones Industrial Average (DJIA – 10,761.03) was able to maintain only a fraction of its post-Fed momentum, ending up 7.4 points, or 0.07%. Sixteen of the Dow's 30 components closed higher, led by Caterpillar, while commodity concern Alcoa paced the 14 decliners. The blue chip barometer might not have made any major moves today, but the Dow did solidify its newfound foothold above former resistance at 10,700.

The S&P 500 Index (SPX – 1,139.78) couldn't maintain its grip on positive territory, settling for a daily deficit of about 3 points, or 0.3%. However, as Detrick noted, the SPX remains perched above the key 1,130 level, which served as a technical ceiling throughout the summer.

Finally, the Nasdaq Composite (COMP – 2,349.35) followed suit with the SPX by giving up 6.5 points, or 0.3%, after making the briefest of trips above the breakeven line in afternoon trading.

CRUDE OIL FUTURES
Crude futures ended lower today, as the FOMC warned of a persistently sluggish economic recovery. Against the backdrop of remarkably bloated oil inventories, the central bank's cautious forecast didn't exactly bode well for future energy demand. However, simultaneous weakness in the U.S. dollar helped the front-month contract pare the worst of its losses. By the close, crude oil for October delivery shed $1.34, or 1.8%, to finish at $73.52 per barrel.

GOLD FUTURES
]Gold futures finished trading ahead of the FOMC announcement, closing a relatively quiet session on a loss of $6.50, or $0.5%, at $1,274.30 per ounce. The contract made up for lost time in after-hours trading, though, with gold for December delivery surging higher as traders rushed to stock up on the popular inflationary hedge. In electronic trading, gold jumped as high as $1,290.40 per ounce -- well north of Monday's freshly tapped record peak.

HAPPY TRADING