Stocks are poised to end a volatile week mixed, with the Nasdaq poised to advance for the week and the Dow and S&P set to finish lower. The Fed's failure to announce new quantitative easing, along with poor economic data from the U.S. and abroad, weighed on stocks. However, the euro zone's new initiatives to combat the debt crisis boosted markets... MACRO NEWS: The Fed lowered its 2012 GDP outlook and said that it's ready to act if labor markets deteriorate further. However, the central bank did not announce a new round of quantitative easing, disappointing investors... Also disappointing investors was most of the economic data from around the world. Germany, China, and the U.S. all reported weaker than expected economic data. On a positive note, the ECB relaxed its collateral rules for European banks and the leaders of the four largest euro zone countries agreed to push for a $163B stimulus package. Moreover, French President Hollande said the leaders would discuss the possibility of allowing the bloc's bailout funds to buy bonds on the open market... COMPANY NEWS: Microsoft (MSFT) announced that it would launch its own line of computer tablets, called Surface... As expected, Moody's downgraded a number of large financial firms. The ratings agency yesterday downgraded four large financial firms by one notch, ten by two notches and one by three notches. The biggest surprise was that Morgan Stanley (MS) was downgraded by two notches, while some had expected the investment bank to be cut by three levels... Adobe Systems (ADBE) reported stronger than expected Q2 results but provided lower than expected Q3 revenue guidance.
The S&P 500 declined for a third day on Friday with the three major stock indexes posting their first negative …