CLOSING BELL

Dow 10402.35  +9.45, Nasdaq 2243.87  +2.16, S&P 1109.17  +2.42 

The Fed's decision to hike the discount rate from 0.5% to 0.75% caused traders to dump stocks in pursuit of the dollar.  In the early going the dollar rallied as much as +0.5% and stocks fell.  Then calmer minds to hold since the Fed expressed that its decision was not a signal for any change in the economy or monetary policy.  The thought of the Fed was that their action will encourage banks to borrow from the private sector.

A softer-than-expected inflationary reading played a hand in the dollar's downturn. After a much higher than expected Producer Price Index (PPI) reading the CPI was welcome news today. The Consumer Price Index (CPI) for January made a +0.2% monthly gain, which was slightly below the +0.3% increase that economist had expected. The core rate which excludes food and energy, fell -0.1% month-over-month.  This was instead of rising the +0.1% that economists had forecast.  This allowed the dollar to fall and stocks to rally as fears of out of control inflation dissipated.

Some stocks that had a good day include: Berkshire Hathaway (BRKB) 78.74 +2.10, +2.74%, United States Steel Corp. (X) 53.29 +2.33, +4.57%, Sysco Corp. (SYY) 29.14 +0.63, +2.21%, and Teva Pharmaceuticals (TEVA) 58.74 +1.736, +3.05%.

Advancing Sectors: Utilities +1.4%, Financials +0.6%, Industrials +0.5%, Materials +0.5%, Consumer Discretionary +0.4%, Energy +0.2%, Consumer Staples +0.1%

Declining Sectors: Telecom -0.3%, Health Care -0.2%, Tech -0.1%