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    September 18, 2007

    Wall Street up ahead of Fed decision

    Filed under: Administaff, General Motors, Boeing, Lehman Brothers, Microsoft, Caterpillar, Best Buy

    Wall Street was higher in midday trade ahead of the Federal Reserve’s decision on interest rates, due at mid-afternoon New York time.

    The Dow Jones Industrial Average was 0.61 percent higher to 13,485.52, while the Nasdaq Composite added 0.55 percent to 2,595.83 and the S&P 500 gained 0.71 percent to 1,487.19.

    The Labor Department reported that producer prices were down by 1.4 percent overall in August, while core inflation, which removes food and energy costs from the equation, was up 0.2 percent.

    The overall decline was the biggest in 10 months, led by energy costs that were 6.6 percent lower.

    Lehman Brothers (NYSE: LEH) added $1.72 to $60.34 after it said its profits in the third quarter were down by 3 percent compared to the same period last year, less of a drop than had been expected.

    Also reporting was Best Buy (NYSE: BBY).

    The consumer electronics retailer said its profits were up 8.7 percent, better than expected sending shares up 4.2 percent to $46.41.

    Construction machinery maker Caterpillar (NYSE: CAT) gained $1.38 to $75.07 after an analyst said that it would likely meet its goal of $3 billion sales in China by 2010.

    General Motors (NYSE: GM) dropped 18 cents to $34.05 as talks with the United Auto Workers continued but the union told members that it might have to impose a deadline on negotiations if progress is not made in relation to several unresolved issues.

    The union wants job security guarantees for workers in return for concessions on wages and a health care fund.

    Microsoft (NAS: MSFT) dropped another 37 cents to $28.36 on the EU court ruling that went against the software company on Monday.

    Boeing (NYSE: BA; TYO: 7661) was $1.57 lower to $97.07 after Banc of America (NYSE: BAC; TYO: 8648) dropped its target share price on the aerospace group from $131 to $114 on developments risks in relation to its 787 Dreamliner aircraft.





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