Market Heading Lower; Fed Initiates Second Round of Quantitative Easing

By / / Market Update
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The U.S. equity market is headed lower, despite the announcement from the Federal Reserve that it will initiate another round of quantitative easing by buying $600 billion worth of Treasuries over an 8-month period. The Dow Jones is currently down 0.09% to 11,178.73, the S&P 500 is currently down 0.04% lower at 1,193.10 and the Nasdaq is currently up 0.8% to 2,535.54.

The U.S. Federal Reserve announced that it will buy $600 billion worth of Treasuries to boost the U.S. economy. The Fed said that it will buy around $75 billion worth of long-term government bonds through the middle of 2011. Additionally, the Fed is also expected to reinvest in $250 billion to $300 billion worth of mortgage securities, during the same period.

CenturyLink Inc. (NYSE: CTL) reported its third-quarter financial results today. The company saw its revenue and profits fall in the third-quarter as consumers continued to move away from traditional wireline phone service. CenturyLink reported third-quarter earnings of $231.2 million, or $0.76 per share, down from $280.8 million, or $0.94 per share reported in the third quarter of 2009. Shares of CenturyLink Inc. are currently up 1.05% to $42.27, after touching a 52-week high of $42.35.

MGM Resorts International (NYSE: MGM) shares are soaring after the company reported its third-quarter financial results. The company reported a narrower third-quarter loss on fewer charges, strong results in Macau and an improvement in Las Vegas. Shares of MGM Resorts International are currently up 9.96% to $12.26, after touching an intra-day high of $12.27.

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Disclaimer: This article is for informational purposes only and does not constitute financial advice. We are not financial professionals. The authors and/or site operators may hold positions in the companies or assets mentioned. Always do your own research before making financial decisions.