Wednesday, July 11, 2012

Stocks fall after Fed?s gloomy outlook

Discussing where the markets stand post-Fed minutes, with Rob Morgan, Fulcrum Securities; CNBC's capital markets editor Gary Kaminsky and the "Closing Bell" crew. We need "better stability in capital markets around the world that aren't fortified by so...

By msnbc.com news services

Stocks fell Wednesday as minutes from the Federal Reserve's last meeting showed policymakers are open to the idea of providing more economic stimulus, but that conditions might need to worsen for a consensus to build.

At its meeting in late June, the Fed announced that it would buy an additional $267 billion in long-term bonds with proceeds from the sale of short-term notes. But it didn't embark on another round of quantitative easing to stimulate the economy.

"There seem to be a number of cross-currents coming out of the Fed. A few Fed members noted additional policy action could be warranted if the economy were to lose momentum; however, it doesn't seem like anything concrete is imminent," said Michael Sheldon, chief market strategist of RDM Financial, in Westport, Connecticut.

"That, along with the FOMC's citing that risks have increased and volatility is higher, are probably the culprits for the market's afternoon swoon."

The news caused the market, which was trading near flat for much of the morning, to slide. The Dow Jones industrial average closed the day down 49 points.

Reuters contributed to this report.

Source: http://marketday.msnbc.msn.com/_news/2012/07/11/12686102-stocks-fall-after-feds-gloomy-outlook?lite

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