Stock Market Today

By Jonathan Cheng

U.S. stocks opened mixed Wednesday as cautious investors readied themselvesfor the Federal Reserve’s policy statement.

The Dow Jones Industrial Typical fell 9 points at 11398. The Standard & Poor’s500-stock index gained two points, or 0.2%, to 1204 and also the Nasdaq Compositeadded 18 points, or 0.7%, to 2608.

Leading the gains had been technology and telecommunications stocks. InternationalBusiness Machines rose 0.8%.

Weighing on the downside were materials, energy and industrial stocks.Caterpillar fell 1.1%.

Investors are looking ahead to a statement to be released around 2:15 p.m.,after the finish of a two-day meeting of the Fed’s policy-setting committee. Manyare expecting the Fed to announce measures to stimulate a struggling economy,which includes changing the composition of its securities portfolio so it holds morelonger-term debt, a move known as “Operation Twist.”

On the economic calendar, data on existing home sales for August are scheduledfor release at 10 a.m. EDT.

The Dow is looking to extend a winning streak that has seen gains in six ofthe last seven days, though Tuesday’s trading saw a gain of nearly 150 pointsevaporate, with the blue-chip index edging up just eight points.

In overseas markets Wednesday, Europe was mostly lower. The Stoxx Europe 600down 0.7%, as the lack of an announcement of a deal on Greek financing worriedinvestors that recent progress was slowing. Asian markets mostly higher; China’sShanghai Composite rose 2.7%.

Gold futures slipped to around $1,800 an ounce. Crude oil futures were offslightly to below $87 a barrel, but the direction may change after the releaseof weekly inventory data at 10:30 a.m. EDT.

The U.S. dollar was mixed, easing against the yen while trading flat againstthe euro. Treasurys rose, sending the yield on the 10-year note back nearhistoric lows, at 1.9375%.

In corporate news, shares of Oracle rallied 7.2% after the business-softwarecompany reported fiscal first-quarter results that came in at the high finish ofits forecast. Revenue from new licenses grew by 17%.

Adobe Systems climbed 6.1% after the software program company reported fiscal third-quarter earnings that exceeded estimates. Adobe provided an upbeat outlook forthe current quarter.

General Mills gained 1.9% after fiscal first-quarter results had been higher thanexpected, along together with the packaged foods company affirmed its full-year outlook.

Elsewhere, Walter Power dropped 14%. The metallurgical-coal producer providedan earnings outlook for the second half of its fiscal year that was nicely belowexpectations.

 (Finish) Dow Jones Newswires 09-21-111001ET Copyright (c) 2011 Dow Jones & Company, Inc.

FRANKFURT — The European Central Bank said Wednesday that starting next yearit will widen the range of securities it will accept as collateral to debtinstruments issued by credit institutions and not traded on a regulated market.

At present, the ECB accepts debt instruments issued by credit institutionsthat are traded on a regulated market.

To take effect Jan. 1, 2012, the step comes amid concerns that some Europeanbanks could be having difficulty accessing funds inside the inter-bank money marketplace.

-By Margit Feher, Dow Jones Newswires; +49 69 29725 509; margit.feher@dowjones.com

 (Finish) Dow Jones Newswires 09-21-111005ET Copyright (c) 2011 Dow Jones & Company, Inc.

FRANKFURT — The European Central Bank said Wednesday that starting next yearit will widen the range of securities it will accept as collateral to debtinstruments issued by credit institutions and not traded on a regulated market.

At present, the ECB accepts debt instruments issued by credit institutionsthat are traded on a regulated market.

To take effect Jan. 1, 2012, the step comes amid concerns that some Europeanbanks could be having difficulty accessing funds inside the inter-bank money marketplace.

-By Margit Feher, Dow Jones Newswires; +49 69 29725 509; margit.feher@dowjones.com

 (Finish) Dow Jones Newswires 09-21-111005ET Copyright (c) 2011 Dow Jones & Company, Inc.

======================================================= Existing Home Sales Aug July ! Consensus: ! Total Sales: 5.03M four.67M ! four.80M ! % Change: +7.7% -3.5% ! Actual: ! Months Supply: 8.5 9.5r ! 5.03M !======================================================= By Alan Zibel and Jeff Bater Of DOW JONES NEWSWIRES

WASHINGTON -(Dow Jones)- Sales of previously occupied homes within the U.S. rosein August to the highest level in five months but remained weak from ahistorical perspective as the sputtering housing industry fails to propel theeconomy.

Existing-home sales increased 7.7% from a month earlier to a seasonallyadjusted annual rate of 5.03 million, the National Association of Realtors saidWednesday. July’s sales pace was unrevised at four.67 million per year. Sales wereup 18.6% from the same month a year earlier.

The results were better than forecast. Economists surveyed by Dow JonesNewswires had expected home sales to rise by 2.7% to an annual rate of four.80million.

Jed Smith, an economist at the Realtors group, said the monthly sales increaseresulted from closings of sales that had bogged down earlier inside the summer dueto tight mortgage-lending standards and problems with appraisals.

“We had a number that were delayed, they closed,” he said.

However, cancellations of sales remained high. A survey of Realtors found that18% of buyers who signed contracts for properties wound up canceling them inAugust — double last year’s rate.

The median sales cost was $168,300, down 5.1% from $177,300 a year earlier.

Regardless of the monthly increase in sales, the U.S. continues to struggle with theaftermath of the worst housing bust in decades. Last year was the worst forexisting-home sales because 1997. This year’s sales are on track to be justslightly better.

Home costs, meanwhile, are expected to drop 2.5% this year and rise just 1.1%annually by way of 2015, according to a survey of a lot more than 100 economistsreleased Wednesday by MacroMarkets LLC. At the same time as the International Monetary Fund onTuesday cut its 2012 growth forecast for the U.S. to 1.8%, from 2.7%, citing aweak housing marketplace as a key negative factor.

The inventory of previously owned homes listed for sale, meanwhile, fell atthe end of August to three.58 million. That works out to a 8.5-month supply at thecurrent sales pace, compared with a healthy level of about six months.

The housing sector faces even more trouble at the end of this month, when whenthe maximum size of loans that can be backed by government-controlled mortgagecompanies Fannie Mae (FNMA), Freddie Mac (FMCC) along with all the Federal HousingAdministration declines. Congress can prevent those limits from falling, butappears unlikely to act.

The new limits vary by location, but will drop to $625,500 in expensivemarkets for example New York, Los Angeles and Washington from the present $729,750.

Many Republicans see letting the limits drop as a way to reduce the U.S.mortgage market’s dependence on federal support. But Democrats, mainly fromcoastal states, want to preserve the existing limits.

Letting the limits fall is a “terrible mistake,” Rep. Barney Frank (D., Mass.)told reporters Tuesday. “It doesn’t expense us money, and it’s going to be afurther hit to housing.”

The Realtors’ report said home sales grew last month compared with a monthearlier in all four regions. Sales had been up 18.3% within the West, 5.4% inside the South,3.8% inside the Midwest and 2.7% in the Northeast.

-By Alan Zibel and Jeff Bater; Dow Jones Newswires; 202-862-9263;alan.zibel@dowjones.com

 (Finish) Dow Jones Newswires 09-21-111015ET Copyright (c) 2011 Dow Jones & Company, Inc.

======================================================= Existing Home Sales Aug July ! Consensus: ! Total Sales: 5.03M four.67M ! four.80M ! % Change: +7.7% -3.5% ! Actual: ! Months Supply: 8.5 9.5r ! 5.03M !======================================================= By Alan Zibel and Jeff Bater Of DOW JONES NEWSWIRES

WASHINGTON -(Dow Jones)- Sales of previously occupied homes within the U.S. rosein August to the highest level in five months but remained weak from ahistorical perspective as the sputtering housing industry fails to propel theeconomy.

Existing-home sales increased 7.7% from a month earlier to a seasonallyadjusted annual rate of 5.03 million, the National Association of Realtors saidWednesday. July’s sales pace was unrevised at four.67 million per year. Sales wereup 18.6% from the same month a year earlier.

The results were better than forecast. Economists surveyed by Dow JonesNewswires had expected home sales to rise by 2.7% to an annual rate of four.80million.

Jed Smith, an economist at the Realtors group, said the monthly sales increaseresulted from closings of sales that had bogged down earlier inside the summer dueto tight mortgage-lending standards and problems with appraisals.

“We had a number that were delayed, they closed,” he said.

However, cancellations of sales remained high. A survey of Realtors found that18% of buyers who signed contracts for properties wound up canceling them inAugust — double last year’s rate.

The median sales cost was $168,300, down 5.1% from $177,300 a year earlier.

Regardless of the monthly increase in sales, the U.S. continues to struggle with theaftermath of the worst housing bust in decades. Last year was the worst forexisting-home sales because 1997. This year’s sales are on track to be justslightly better.

Home costs, meanwhile, are expected to drop 2.5% this year and rise just 1.1%annually by way of 2015, according to a survey of a lot more than 100 economistsreleased Wednesday by MacroMarkets LLC. At the same time as the International Monetary Fund onTuesday cut its 2012 growth forecast for the U.S. to 1.8%, from 2.7%, citing aweak housing marketplace as a key negative factor.

The inventory of previously owned homes listed for sale, meanwhile, fell atthe end of August to three.58 million. That works out to a 8.5-month supply at thecurrent sales pace, compared with a healthy level of about six months.

The housing sector faces even more trouble at the end of this month, when whenthe maximum size of loans that can be backed by government-controlled mortgagecompanies Fannie Mae (FNMA), Freddie Mac (FMCC) along with all the Federal HousingAdministration declines. Congress can prevent those limits from falling, butappears unlikely to act.

The new limits vary by location, but will drop to $625,500 in expensivemarkets for example New York, Los Angeles and Washington from the present $729,750.

Many Republicans see letting the limits drop as a way to reduce the U.S.mortgage market’s dependence on federal support. But Democrats, mainly fromcoastal states, want to preserve the existing limits.

Letting the limits fall is a “terrible mistake,” Rep. Barney Frank (D., Mass.)told reporters Tuesday. “It doesn’t expense us money, and it’s going to be afurther hit to housing.”

The Realtors’ report said home sales grew last month compared with a monthearlier in all four regions. Sales had been up 18.3% within the West, 5.4% inside the South,3.8% inside the Midwest and 2.7% in the Northeast.

-By Alan Zibel and Jeff Bater; Dow Jones Newswires; 202-862-9263;alan.zibel@dowjones.com

 (Finish) Dow Jones Newswires 09-21-111015ET Copyright (c) 2011 Dow Jones & Company, Inc.