Stocks Rebound As Fed Leaves Rates Unchanged

Stocks rebounded Tuesday as the Federal Reserve left interest rates unchanged and maintained its neutral bias.

The SEC got a new chief – William Donaldson, former NYSE chairman and co-founder of Donaldson, Lufkin & Jenrette.

The Nasdaq gained 23 to 1390, the S&P 500 recouped 12 to 904, and the Dow rose 100 to 8574. Volume rose slightly to 1.26 billion shares on the NYSE, but eased to 1.48 billion on the Nasdaq. Advancers led 22 to 10 on the NYSE, and 20 to 13 on the Nasdaq. Upside volume was 78% on the NYSE, and 80% on the Nasdaq. New highs-new lows were 33-27 on the NYSE, and 33-38 on the Nasdaq.

Investors shook off a revenue warning from Nokia , which fell 3%.

Broadwing soared 45% after snagging $200 million in financing from Goldman Sachs.

AMD , up 9%, issued a new Athlon server chip.

Level 3 rose 7.7% on a deal with United Online , which gained 9.6%.

Unisys and Foundry rose after reaffirming guidance.

Yahoo and DoubleClick rose on predictions for an advertising rebound.

Gateway , up 1.4%, announced that it would link its showroom PCs to form an on-demand computing service. IDC reported that public sector spending is driving PC growth.

Microsoft , up 1%, could move some application enablers to Linux, according to a META Group prediction.

AskJeeves , up 8%, inked a deal with

Palm , up 1%, scored a deal with China’s Legend Group. lost 3% on a downgrade. PC Connection gained 14% on a deal with the National Institutes of Health.

eUniverse surged 26% after raising guidance. Inforte rose 21% on a stock buyback program.

SBC was unchanged after announcing that it will bring all its offerings under the SBC brand.

Answerthink , up 4%, will resell SAP enterprise software.

Proxim , off 2.6%, announced a sweeping reorganization.

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