Stocks closed mostly lower on Thursday, giving up a 1-percent rally after the Fed did not raise interest rates after its September meeting. Bobbi Rebell reports.
Wall Street's rally faded after the Federal Reserve decided not to hike interest rates. The central bank said global risks had led it to punt on a move. Wells Fargo's John Silvia: SOUNDBITE: JOHN SILVIA, CHIEF ECONOMIST, WELLS FARGO (ENGLISH) SAYING: "The introduction of the global factor, I think, was the dominant new piece of information that the Fed gave to us. We had not seen the emphasis on global before in this way." Interest sensitive financial shares were the biggest losers. Ahead of the rate decision, investors got data supportive of a rate hike. Jobless benefit applications fell last week, building permits rose in August, and housing starts remained above the one million mark. Cablevision shares soared to a 14 year high, the S&P 500's biggest gainer. Dutch telecom group Altice is buying the cable TV operator for nearly $18 billion. Rite Aid's shares lost a big chunk of this year's gains after it cut its full year profit and sales forecast, citing costs from its $2 billion acquisition of pharmacy benefit manager EnvisionRx. A warning also from Verizon. The wireless provider said earnings next year may be flat. GM admitted it misled the government and the public about its vehicles' faulty ignition switches. It agreed to pay $900 million to end a U.S. criminal probe. In Europe, shares ended mixed. Investors refrained from making big moves ahead of the Fed rate decision.