Stocks Open Higher Ahead of Fed Interest Rate Decision

The U.S. economy shrank 6.1% during the 1st quarter, but investors were mostly focused on the Federal Reserve Bank's decision on interest rates. The Dow surged 118 points to 8135 while Nasdaq leaped 23 points to 1697.

On the upside

Wyndham Worldwide (NYSE: WYN) posted higher 1st quarter profits as cost-cutting offset reduced demand for hotel and vacation time shares.

Shares of drug developer Dendreon (Nasdaq: DNDN) recovered after a mysterious sell-off that halved the stock price late yesterday. Analysts reiterated that its prostate cancer drug treatment hold promise.

Managed computing services provider Savvis (Nasdaq: SVVS) reported higher revenues and earnings and reaffirmed its outlook.

On the downside

Novavax (Nasdaq: NVAX) paid off $17 million in debt with 70% cash and 30% in new stock. Investors sold of shares of the vaccine research company due to the dilution.

E*Trade Financial (Nasdaq: ETFC) posted a sizable loss as the online brokerage prepared to raise more capital to shore up its balance sheet. Analysts promptly downgraded the stock.

Shares of VF Corp (NYSE: VFC) fell sharply after the apparel maker reported lower 1st quarter profits and lowered its outlook for the rest of the year.

In the broad market, advancing issues outpaced decliners by a margin of 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 7 points to 480.