The Fed statement Cut on Gain on Wall Street

Action major selling in the late session gains cut, making the stock index on Wall Street ends flat. A statement from U.S. Central Bank cut its success positive sentiment from strong retail sales figures for November.

The U.S. central bank said in a statement explaining its policies, economic recovery is still too weak to reduce unemployment. The Fed also confirmed its commitment to purchase securities by $ 600 billion.

The statement was immediately picked up the securities yield higher and push financial stocks, which hit hard by high interest rates.

"I was a bit disappointed the Fed did not see the world with the same light level as seen investors," said Andrew Wilkinson, senior analyst at Interactive Brokers Group, as quoted by Reuters on Wednesday (15/12/2010).

In trading Tuesday (12/14/2010), the Dow Jones closed rose 47.98 points (0.42%) to the level 11476.62. The broader Standard & Poor's 500 likewise rose 1.13 points (0.09%) to a level of 1241.59 and the Nasdaq rose 2.81 points (0.11%) to a level of 2627.72.

Stocks could move higher after data showed retail sales rose for the fifth consecutive month during November. These data confirm the rebound from the side as well as consumer spending, which accounts for two thirds of the U.S. economy.

But Best Buy Co. Inc. shares slumped after the big U.S. electronics retailer posted earnings that were lower than expected during the third quarter of 2010. Best Buy also cut its 2010 profit projection. Best Buy shares immediately dropped 14.8% while the S & P retail index fell 0.5%.

banking sector stocks dropped the most sharply with GSPF index down 0.9% and become the largest sector, which dropped from S & P. Shares of JPMorgan Chase & Co. fell 1.7%.

Trading was very quiet with transactions on the New York Stock Exchange only as much as 7.2 billion shares, below the average so far this year which amounted to 8.61 billion shares.