IBD's Top 10 - Wednesday

• Investor's Business Daily
• On 6:42 pm EST, Wednesday November 4, 2009

Fed: 'Extended' Low Rates Ahead

1 Policymakers slightly upgraded their view of the U.S. economy, but with the recovery still weak they reaffirmed a pledge to leave rates at record lows for an "extended" period. The Fed did say it would buy only $175 billion of debt from the likes of Freddie Mac (NYSE:FRE - News) and Fannie Mae (NYSE:FNM - News), down from earlier plans to buy $200 bil.

Stocks Rise, Then Falter At Finish

2 The major indexes pared gains after they all rose more than 1% intraday. The Dow and NYSE composite finished up 0.3%, the S&P 500 0.1% in lighter NYSE volume. The Nasdaq fell 0.1% in higher trade. Stocks rose early on economic reports. Volatility followed the Fed's statement. Oil and gold prices rose.

Cisco Beats, Guides Q2 Above

3 The networking gear giant said after hours that Q1 EPS slid 14% to 36 cents ex items, but topped views by a nickel. Sales fell 13% to $9 bil, also above views. CEO John Chambers said Cisco (NasdaqGS:CSCO - News) is seeing solid indications of an economic recovery. Cisco expects Q2 sales growth of 1%-4%, above forecasts. Shares rose 3% late.

Health Stocks Get Election Lift

4 Aetna (NYSE:AET - News) rose 5%, UnitedHealth (NYSE:UNH - News) 4% and Wellpoint (NYSE:WLP - News) 3% after the GOP's big Tue. wins in gubernatorial races in Va. and N.J. gave moderate Dem lawmakers pause. Also, Senate Majority Leader Harry Reid said Tue. a health bill may not pass in '09. But sources told AP that the AARP will back the $1.2 tril House bill. Merck (NYSE:MRK - News) rallied 6% after predicting solid growth for years.

Job Cuts, Services Growth Cools

5 The ADP employment report said private employers cut 203,000 jobs in Oct., slightly more than expected but still the 7th straight month of smaller losses. A separate report said layoff plans fell to a 19-month low. The Labor Dept.'s jobs report is due out Fri. ISM's services index edged down 0.3 point 15 50.6 vs. views for 51.5. It's still above the neutral 50 level.

GM Opel Move Angers Germans

6 German leaders demanded GM repay loans after the U.S. automaker's surprise move Tue. to keep its European unit. GM killed a 55% Opel stake sale to Canadian auto parts maker Magna Int'l (NYSE:MGA - News) and Russian lender Sberbank. They had vowed to save German jobs. German unions threatened strikes. Also, Fiat, which runs Chrysler, said the ailing automaker will overhaul its vehicle lineup.

Senate Re-Ups Home, Jobless Aid

7 Senators approved extending jobless benefits for 20 weeks. They also extended an $8,000 first-time homebuyer credit from Nov. 30 to April 30 and expanded it to let longtime homeowners get a $6,500 credit for moving up to another home. Mortgage applications to buy a home hit an 8-month low last week as time runs out to close a deal by Nov. 30. A quick House OK is seen.

Iran Protesters Appeal To Obama

8 As pro-gov't supporters chanted "Death to America" and stomped on U.S. flags, not far away, hundreds of opposition protesters denounced Iran's leaders and appealed to the U.S. president to choose sides: "Obama, you are either with them, or with us," they chanted in Farsi. Paramilitary units once again fired tear gas and beat people with batons to end the demonstration.

News Corp. Up On Cable Growth

9 The media giant's Q1 EPS rose 10% to 22 cents, beating views by 4 cents. Revenue fell 4% to $7.2 bil, above views. Growth in cable network, movie and book units helped News Corp. (NasdaqGS:NWS - News), but newspaper and TV ads fell. Its shares rose late. Time Warner's (NYSE:TWX - News) profit fell, but still beat views. Comcast's (NasdaqGS:CMCSA - News) profit also topped as investors await news on a NBC Universal (NYSE:GE - News) deal. Its shares fell 3%.

House Speeds Credit Card Rules

10 The House overwhelmingly voted to move up the effective date for credit card reforms to Dec. 1 from Feb. 22. The law, passed in May, limits issuers' rate and fee hikes. Lawmakers say credit card firms are rushing to up fees and rates before the deadline. Also, a House financial panel voted to give the SEC more money and authority.

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