Nasdaq: ONXX

The stock market today (Thursday) is trying to recover from a disappointing announcement yesterday by the Federal Reserve, which lowered its economic outlook and extended Operation Twist.

The markets had hoped for something more out of the two-day FOMC meeting and responded negatively to the stimulus.

Also impacting the markets today are a number of weak economic reports including disappointing manufacturing indicators from overseas.

Europe's PMI index, based on a survey of purchasing managers in both the services and manufacturing industries, held steady at 46 which is near a three-year low. A measure of specifically euro-region manufacturing fell to 44.8 from 45.1 - another three-year low - in May, London-based Markit Economics said today in an initial estimate.

Both of those gauges were dragged down by a decrease in Germany's manufacturing output.

China also reported a preliminary PMI index, which if correct at 48.1 would be its lowest level in seven months. PMI levels below 50 indicate contraction.

In the U.S. existing home sales fell 1.5% in May, weekly initial unemployment claims remained depressingly high at 387,000 and the Fed's Philadelphia economic index fell to negative 16.6 in June, its lowest level since August.

To continue reading, please click here...