Fed Keeps Rates Unchanged, US Indexes Close Higher, RIMM Slammed Down

The Fed announced that interest rates would remain unchanged at 2% today resulting in an immediate, aggressive spike higher in the major indexes. The DJIA closed up today but well off its intraday high at 11811.83 adding +4.40, the Nasdaq climbed +32.98 to 2401.26 and the S&P 500 advanced +7.68 to 1321.97.

Research In Motion
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was slammed down in after-hour trading today, presently losing 8.99% or $12.49 to $129.88/share on missing analysts estimates and potential delays in releasing the “Bold” handset.

Oracle
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climbed $0.31 or 1.46% to $22.88/share on a strong 27% profit increase from software sales and acquisitions.

Ashland Inc.
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added 9.25% or $4.46 to $52.67/share when the chemical company was upgraded to “neutral” by JP Morgan.

Baidu.com
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– China’s number one search engine added 8.27% or $25.37 to $332.09/share on speculation that it may beat second quarter earning estimates.

Oil dropped $2.57 to $134.43/barrel, Gold dipped $9.30 to $882.30/oz and the US Dollar fell against the Euro.

Market Snapshot

Dow

+4.40 11811.83

NASDAQ

+32.98 2401.26

S&P 500

+7.68 1321.97

Economic
News

Durable Orders (May): Actual 0.0%, Consensus 0.0%

New Home Sales (May): Consensus 510K, Prior 525K

Chain Deflator-Final (Q1): Consensus 2.6%, Prior 2.6%

GDP Final (Q1): Consensus 1.0%, Prior 0.9%

Initial Claims (06/21): Consensus 375K, Prior 381K

Existing Home Sales (May): Consensus 4.95M, Prior 4.89M

Personal Income (May): Consensus 0.4%, Prior 0.2%

Personal Spending (May): Consensus 0.7%, Prior 0.2%

Crude Inventories (06/21): Consensus NA, Prior -1242K

PCE Core Inflation (May): Consensus 0.2%, Prior 0.1%