The major averages ended mixed again after a stronger than expected durable goods report was released and the Fed decided to hold interest rates steady. Advancers led decliners by over a 2-to-1 ratio on the NYSE and by about a 3-to-2 ratio on the Nasdaq exchange. Volume was reported lower on the NYSE and very near the prior session total on the Nasdaq exchange. There were only 6 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, lower than the 8 issues that appeared on the prior session.  A greater expansion in the new highs list would offer encouraging news for growth oriented investors.

Investors sold stocks after the Federal Reserve did not increase the size of its $1.75 trillion bond-purchase program, sending the Dow Jones Industrial Average into negative territory. The Fed indicated in its after-meeting commentary that the rate of economic contraction is slowing and inflation will remain "subdued for some time." This helped allay concerns that the rate of economic slowdown will increase and that inflation will spread. The central bank has kept its benchmark interest rate between zero and 0.25% since the fourth quarter of 2008. The Fed said its overnight lending rate will stay at "exceptionally low levels" for "an extended period."

News on the economic front was mostly positive, which helped the major averages rally in the first half of the session. The Organization for Economic Cooperation and Development (OECD) raised its forecast for the economy of its 30 member nations for the first time since 2007 as the US slump shows signs of easing. The report showed that the combined economy of the world’s largest countries will fall -4.1% in 2009 and expand by +0.7% in 2010. The Commerce Department surprised the Street when they said that durable goods orders unexpectedly jumped in May. This was the latest in a series of stronger than expected economic data. Durable goods rose +1.8% and matched the previous month’s increase. Not all the news was positive, a separate report showed that sales of new houses unexpectedly fell in May, which put a flurry of downward pressure on most housing-related stocks.

PICTURED: The Dow Jones Industrial Average negatively reversed and closed below its 50-day moving average (DMA) line.

The Bank ($BKX +1.14%) and Broker/Dealer ($XBD +1.69%) indexes posted modest gains, and a smaller gain from the Retail Index ($RLX +0.68%) was also a positive influence on the market averages.  Oracle Corp's (ORCL +7.00%) better-than-expected fourth quarter results and upside first quarter earnings per share guidance helped inspire the tech sector's strength.  This allowed the Nasdaq Composite to outpace its peers as the Internet ($IIX +1.63%), Networking ($NWX +1.69%), Semiconductor ($SOX +1.74%), and Biotechnology ($BTK +1.86%) indexes collectively boosted the tech-heavy index.  The Gold & Silver Index ($XAU +2.93%) posted a second consecutive solid gain and rallied back above its 50-day moving average (DMA) line.  The Oil Services ($OSX -0.03%) and Integrated Oil ($XOI +0.20%) indexes were little changed and the Healthcare ($HMO -1.08%) group was among the session's laggards ending in the red.

Charts courtesy www.stockcharts.com 
 

PICTURED: The Networking Index ($NWX +1.69%) found support near its 50-day moving average line.

Color Codes Explained :
Y - Better candidates highlighted by our staff of experts.
G - Previously featured in past reports as yellow but may no longer be buyable under the guidelines.