Markets Tuesday 12/11

[ron]

mrkts are flat at mid-day, the same as when it opened, as today's session is all about this afternoon's FOMC rate decision and policy statement at 14:15 ET....Traders are in "wait and see" mode and are likely only looking for day trades/intraday scalps at this point. Dow is currently +7.56 , Naz +7.22, S&P +1.27, NDX +6.1 rtq.

[ron]

sector news:

Washington Mutual (WM $18.62, -$1.25) is trading sharply lower after the company announced $1.6 billion write-down and cut its dividend to $0.15 per share from $0.56 per share. The company also said it plans to issue $2.5 billion in convertible stock,

- AT&Tannounced (T $40.62 +$2.74)it is increasing its dividend by 12.7% to $0.40 and has authorized up to $15 billion in share repurchases.

- Texas Instruments ( TXN $33.64 + $0.98 ) raised the low end of its revenue and earnings per share guidance provided in October. The Dallas-based chipmaker also said demand trends in the analog market are tracking in-line with expectations while the outlook for wireless has improved since the start of the quarter, despite market share erosion.

- Fannie Mae's (FNM $35.73 -$1.17) CEO on CNBC says stock issuance was a "once and for all" transaction, and it is to be in position to have enough capital to get through 2008 and have incremental extra capital. Fannie Mae announced on Dec. 5 it is cutting its dividend and selling $7 billion in non-convertible preferred stock in order to shore up its capital position due to the ongoing challenges in the housing market.

[lamborghini]

The Federal Open Market Committee decided today to lower its target for the federal funds rate 25 basis points to 4-1/4 percent. Incoming information suggests that economic growth is slowing, reflecting the intensification of the housing correction and some softening in business and consumer spending.

Moreover, strains in financial markets have increased in recent weeks. Today's action, combined with the policy actions taken earlier, should help promote moderate growth over time. Readings on core inflation have improved modestly this year, but elevated energy and commodity prices, among other factors, may put upward pressure on inflation.

In this context, the Committee judges that some inflation risks remain, and it will continue to monitor inflation developments carefully. Recent developments, including the deterioration in financial market conditions, have increased the uncertainty surrounding the outlook for economic growth and inflation.

The Committee will continue to assess the effects of financial and other developments on economic prospects and will act as needed to foster price stability and sustainable economic growth.

[ron]

Dow drops as much as 150+ off session high on .25 bsp cut from fed.

[ron]

Dow -158.77, Naz -30, S&P -19.27, NDX -21.53 rtq.