Fed To Purchase $1 Trillion In Bonds And Securities

While the Federal Reserve left the federal funds rate unchanged, the agency announced plans to purchase $1 trillion in government bonds and mortgage-backed securities. The markets rebounded with the Dow climbing 91 points to close at 7487.  Nasdaq surged 29 points to 1491.

On the upside

Friedman, Billings, Ramsey & Co. analyst Bijan Moazami reiterated a rating of Outperform for XL Capital (NYSE: XL).

The Federal Reserve will purchase up to $300 billion in long term government bonds.  Shares of banking stocks Wells Fargo (NYSE: WFC) and Regions Financial (NYSE: RF) rose.

Charming Shoppes (Nasdaq: CHRS) narrowed fourth quarter losses.

On the downside

Crocs (Nasdaq: CROX) auditor Deloitte & Touche questioned the ability of the colorful plastic shoe maker to remain a viable company.

Third quarter earnings for General Mills (NYSE: GIS) tumbled as expenses rose.

Humanitarian group Reporters Without Borders criticized Google (Nasdaq: GOOG) and Yahoo (Nasdaq: YHOO) for bowing to the demands of repressive foreign governments and censoring users.

In the broad market, advancing issues outpaced decliners by a margin of more than 4 to 1 on the NYSE and by nearly 5 to 2 on Nasdaq.  The Russell 2000 which tracks small cap stocks leaped 14 points to 418.