The Federal Reserve Bank was expected to slash interest rates to record lows in order to stimulate the economy and combat the risk of deflation. The Dow surged more than 100 points to 8670 while Nasdaq rose 31 points to 1537.
On the upside
Goldman Sachs (NYSE: GS) posted its 1st quarterly loss as a publicly-traded company. However, the $2.1 billion net loss was better than expected.Best Buy (NYSE: BBY) reported lower 3rd quarter profits and offered buyout packages to nearly all of its corporate employees with the goal of cutting spending by 50%.
Medical instruments maker Beckman Coulter (NYSE: BEC) raised its earnings outlook on slightly lower sales due to reduced expenses.
On the downside
Memory chip maker Stec (Nasdaq: STEC) lowered its 4th quarter sales outlook due to order cancellations.
Diversified U.S. manufacturer Eaton Corp. (NYSE: ETN) blamed the global economic slowdown for lowered revenue and profit forecast.
In the broad market, advancing issues outpaced decliners by more than 3 to 1 on the NYSE and by nearly 3 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks rose 9 points to 462.