Nasdaq Leads Robust Gains In Major Indexes

The major stock indexes shook off an initial decline after the Fed's interest-rate cut and finished Wednesday with solid gains.

The Nasdaq once again took the lead, climbing 1.5%. Meanwhile the S&P 500 added 1.2% and the Dow gained 1%. Volume rose across the board, according to preliminary figures.

Internet, mining, steel and software groups scored some of the day's biggest wins. Midcap stocks also fared well, pushing the S&P 400 up 1.7%.

Crocs CROX, which released its third-quarter results after the close, climbed 2.66 to 74.75 during the regular trading session. But after-hours it was trading around 59.

The shoe maker weighed in with third-quarter results that topped analysts' consensus estimate. In past quarters the company has beaten estimates by a much wider margin. Also, its sales were a bit weak and its outlook disappointed.

China Petroleum & Chemical SNP jumped 15.79 to 165.91. That left it just 7% short of the record high it notched Oct. 17.

On Thursday the Chinese government unexpectedly raised domestic gas and diesel prices 10%. China Petroleum ? also known as Sinopec ? is China's No. 2 oil company. It's been enduring losses by selling fuel at the regulated, below-market prices that China maintains in an effort to avoid inflation and social unrest.

Auto supplier Borg Warner BWA climbed 3.88 to 105.71 as volume more than doubled. The stock broke out of a cup-with-high-handle base on Monday. That move came after the company's earnings topped estimates. It's since climbed 8% from its 98.31 buy point.

Invitrogen IVGN surged 7.80 to 90.87 on more than five times its usual volume. The company reported third-quarter net income of $1.15 a share, excluding one-time items. That's up 60% from a year ago.

On the downside, CommScope CTV tumbled 5.03 to 47.17 as it dropped beneath its 200-day moving average. Volume was more than five times heavier than usual. The cable service provider's Q3 earnings beat estimates. But analysts worried about its $2.6 billion buyout of Andrew Corp.

2:30 p.m. ET update: Stocks Stumble After Fed Cuts Rates

By Ed Carson

The Federal Reserve cut the fed funds target rate by a quarter-point, as expected, but stocks sold off as policymakers signaled they they may not cut rates again.

The Federal Open Market Committee voted 9-1 to cut its key rate to 4.5%. The Fed also cut its less-used discount rate to 5%.

The central bank said housing will likely slow U.S. growth, but said financial market strains have eased "somewhat." Policymakers added that inflation risks remain, with upside inflation risks balancing out downside growth risks.

Treasury yields jumped and odds for another cut in Dec. declined after the decision.

Stocks, which were paring gains in the minutes leading up to the 2:15 p.m. announcement, retreated on the actual news. As of 2:26 p.m., the Nasdaq was about even after being up as much as 0.9%. The S&P 500 and Dow also were flat. The NYSE composite rose 0.2% as energy stocks climbed on surging crude prices.

Oil-machinery stock Cameron International CAM gained 0.74 to 95.53. The stock is testing its 10-week line. Its Accumulation/Distribution Rating has slipped to D+.

Transocean RIG jumped 4.36 to 119.23. The world's largest offshore oil and gas drilling contractor beat third-quarter earnings estimates. Record rig-rental rates and a gain from a tax-sharing agreement boosted results. The stock broke out past a 115.97 buy point Oct. 11 and receded to its 10-week moving average, where it's found support.

On the downside, Psychiatric Solutions PSYS fell 0.65 to 39.55 on above-average volume. The stock has been working on a base since April.

1 p.m. ET update: Stocks Climb, Show No Fear Of Fed

By Juan Carlos Arancibia

Stocks plowed ahead at midday, showing no real concern about the Fed's looming announcement on interest-rate policy.

At 1 p.m. ET, the NYSE composite led with a 0.9% gain. The composite appeared to be getting a boost from energy stocks, which rose on a 3% jump in crude futures.

The S&P 500 and Nasdaq rose 0.7%. The Dow gained 0.5%.

Volume was little changed from yesterday's levels at this time.

Some megacap stocks that comprise a big share of the S&P 500 and Nasdaq were higher.

Microsoft MSFT jumped 0.99 to 36.56 on heavy turnover, reaching its highest level since July 2000. Google GOOG topped the 700-point mark intraday. It was up 5.13 to 699.90 at midday.

Dry-bulk shipping stocks -- hit by strong selling Tuesday -- recovered a portion of their losses.

Diana Shipping DSX, Excel Maritime EXM and DryShips DRYS were moderately higher on heavy trading. The industry came under pressure after an index that tracks rates for certain types of dry-bulk vessels fell sharply.

Partner Communications PTNR cleared a five-month pattern as shares gapped up. The No. 2 wireless service company in Israel beat earnings estimates.

On the downside, Faro Technologies FARO plummeted 7.69, or 20%, to 30.30 on tremendous volume. The maker of electronic measurement devices reported third-quarter earnings below analysts' consensus estimate. The stock slid below its 50-day moving average last week. It has now eliminated all gains, and then some, from a July 31 breakout.

The Fed announces its move on interest rates about 2:15 p.m. ET.

11:15 a.m. ET Stocks Cling To Early Gains On Quiet Trading

By Alan R. Elliott

Indexes stuck near the top of their trading ranges after an early jump, as major investors held fire ahead of this afternoon's pending Fed rate cut decision. A raft of economic data out this morning landed in the Fed's sweet spot: the U.S. economy is improving, but remains below inflation-fueling levels.

The NYSE composite was up 0.7%, the Nasdaq up 0.5% at 11:02 a.m. ET. The S&P 500 was up 0.6% and the Dow 0.3%. Midcaps saw solid trading, with the S&P 400 gaining 0.7% in early action. Volume was down on both exchanges.

Foreign markets almost unanimously showed modest gains.

Oil prices surged, gaining 2.60 to 92.98 a barrel, after weekly crude oil inventories dropped. Data showed crude inventories down another 3.8 million barrels vs. expectations for a 600,000 barrel increase. That compounds last week's surprise drop in supplies. Gasoline inventories climbed after falling in the prior week. Fuel oil/heating oil inventories rose for a second straight week.

Resort operators slipped for a second day, led by Wynn Resorts WYNN, which toppled 6.90 to 161.00. The international resort operator beat Q3 earnings expectations, but by a narrow margin. Las Vegas Sands LVS saw its second straight drop after two consecutive analyst downgrades, losing 3.13 to 134.90 after a 4% drop on Tuesday.

Solar stocks saw heavy morning trading. Sunpower SPWR jumped 7.86 to 126.92 after an upgrade by RBC Capital Markets. First Solar FSLR gained 5.19 154.84. Trina Solar added 2.13 to 59.19.

China-based search engine provider Baidu.com BIDU added 8.67 to 379.67, the stock's eight up day in ten sessions. The stock is extended 73% above a 219.35 buy point after a pullback to its 10-week moving average in September.

On the downside, diversified operator Chemed CHE crumbled, losing 9.18 to 55.69. An operator of hospice care for the elderly, it missed Q3 earnings and gapped down 14%.

10:15 a.m. ET Update: Stocks Open Higher Ahead Of Fed

By Vincent Mao

The major indexes opened higher Wednesday, but pared some gains ahead the looming rate decision.

At 10:00 a.m. ET, the New York composite climbed 0.4%. The Nasdaq and S&P 500 picked up 0.3% each. And the Dow rose 0.2%.

In economic news, the Chicago purchasing managers index slipped to 49.7 in October, worse than estimates of 53.

MasterCard MA gapped above a 169.42 buy point of a cup with handle. Shares charged up 18.85, or 12%, to 176. Before the open, the credit card company delivered Q3 earnings and sales ahead of analysts' estimates. The firm's board also approved a $750 million share buyback.

Silicon Motion Technology SIMO gapped up, surging 2.67, or 12%, to 24.37. Late Tuesday, the NAND memory chip controller maker earned 40 cents a share ex items, 8 cents above Wall Street views. Sales rose 46% to $45.8 million, also above views. Silicon is recovering from a deep 43% correction.

On the downside, Huron Consulting Group HURN gapped down, plunging 20.58, or 25%, to 59.58 on huge trade. The company reported a 49% jump in Q3 earnings, beating views. But its sales fell shy of estimates. And it guided Q4 profit of 61-65 cents a share vs. views of 64 cents. Sales are expected at $135 million to $138 million, or below analysts' views of $146.6 million.

Stratasys SSYS gapped down, stumbling 6.42, or 22%,to 23 in heaving trading. The maker of 3-D prototyping systems reported Q3 earnings and sales below views. It also guided Q4 profit to 70-75 cents vs. views of 73 cents. Sales are pegged at $109 mil-$112 mil, below estimates of $112.49 mil.

9:15 a.m. ET Update: Stocks To Open Higher As Rate Decision Looms

By Vincent Mao

Stock futures pointed to a stronger start Wednesday, ahead of this afternoon's Fed decision.

Nasdaq futures gained 7 points vs. fair value, S&P 500 futures climbed 8 points and Dow futures rose 58 points.

There is a slew of economic data out today. With continued weakness in housing and credit markets, the central bank is expected to cut the discount rate by 25 basis points to 4.5%. The decision will be out at about 2:15 p.m. ET.

Earlier, the ADP employment index predicted an increase of 106,000 private sector jobs in October, with most of the gains stemming from the services sector. On Friday, we will have the Labor Department's jobs report. An increase of 80,000 jobs, public and private, is expected.

The advance reading on Q3 GDP said that the economy grew at 3.9%, the best in six quarters and above expectations of 3.1%.

The data suggest the economy was and is stronger than many thought ? but the market doesn't think it's so strong to keep the Fed from cutting rates.

Crude oil bounced back after sliding 3.4% Tuesday. The December contract rose 59 cents to $90.97 a barrel. Weekly energy inventories are due at 10:30 a.m.

Chipotle Mexican Grill CMG rose 4% in the premarket to a new high after easily beating Q3 profit and sales forecasts, with sales growth accelerating for a 2nd straight quarter. The taco and burrito eatery also remained upbeat about the future.

But Buffalo Wild Wings BWLD plunged 15% in the preopen. Late Tuesday, the restaurant operator reported a 20% rise in Q3 profit, missing views. That was also the third straight period of slowing growth. CIBC World Markets cut its price target to 42 from 48.

Equinix EQIX surged 10% in the premarket. Late Tuesday, the data-center operator delivered a Q3 profit of 12 cents a share, reversing a year-ago loss of 18 cents, beating views. It also pegged fiscal 2008 sales as high as $640 million or above estimates of $592.1 million.

Google GOOG edged up 1% and topped the $700 mark in pre-market trading. A published report said that the Internet kingpin is in talks with Verizon VZ to market cell phones customized with Google's mobile software. Verizon shares climbed 2%.

Garmin GRMN fell 7% in the premarket. The GPS device maker beat Q3 profit views and raised guidance. But it launched a $3.3 billion bid for Dutch digital mapmaker Tele Atlas, topping an offer by rival TomTom.

Dry-bulk shipping firms looked to bounce back after plunging Tuesday. DryShips DRYS and TBS International TBSI were up about 5% each in pre-open trading.

A regional manufacturing gauge, the Chicago PMI, will be out at 9:45 a.m. Economists see a dip to 53 from September's 54.2. Then construction spending will come out at 10:00 a.m.