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Dow: 17,191.37, -195.84, -1.13%
S&P 500: 2,002.16, -27.39, -1.35%
Nasdaq: 4,637.99, -43.50, -0.93%
The S&P 500 Volatility Index (VIX), the market's fear gauge, jumped 16.4% on the day.
What Moved the Markets Today: The Federal Reserve released its most optimistic statement on the U.S. economy since the onset of the 2008-2009 financial crisis. The Fed cited "solid" economic growth and "strong" job growth.
This suggests the central bank will remain on course to raise interest rates in 2015. The Fed has remained cautious about its approach to increasing rates from their current near-zero levels.
Now, check out the other top market stories – plus get today's new profit tip for investors:
- An Apple a Day: Shares of Apple Inc. (Nasdaq: AAPL) rose more than 6% in intraday trading, the day after its quarterly earnings report. Apple smashed Wall Street expectations with record sales of iPhones in the holiday shopping season. This fueled the largest quarterly profits in company history.
- Earnings Beat: Facebook Inc. (Nasdaq: FB) reported earnings after the bell today – and beat both top- and bottom-line estimates. The social media giant reported Q4 earnings per share of $0.54, topping analyst expectations of $0.48. Revenue was $3.85 billion, up 49% year over year, beating estimates of $3.78 billion. Mobile advertising revenue represented 69% of advertising revenue for Q4 2014, up from about 53% of ad revenue in the year-ago quarter. FB stock was down 3% in after-hours trading. Get Money Morning's full coverage of Facebook earnings here…
- Flying High: Shares of Boeing Co. (NYSE: BA) jumped nearly 6% after the company crushed quarterly earnings expectations. The airline manufacturer reported a 23% increase in Q4 profits. The company did offer a lower profit outlook for this year than analysts expected, however. Boeing said it expects 2015 profits, excluding pension and other costs, of $8.40 to $8.60 per share, down from consensus expectations of $8.64.
- Crude Concerns: WTI slid more than 4%, crashing below $45 per barrel, on news that domestic supplies increased last week. Following the Fed statement, oil prices in New York hit their lowest levels since March 2009. Meanwhile, Brent slipped another 2% to hit $48.46 per barrel. Multinational energy producers took a hard hit. Shares of Chevron Corp. (NYSE: CVX) slipped 4.2%, Exxon Mobil Corp. (NYSE: XOM) fell 3.3%, Royal Dutch Shell Plc. (NYSE ADR: RDS.A) slipped 3.87%, and French energy giant Total S.A. (NYSE ADR: TOT) fell 4.76%.
- Blockbuster Lawsuit: In a stunning settlement, Standard & Poor's is expected to pay $1.37 billion to the Department of Justice over a lawsuit centered on one of the larger influences in the 2008 financial crisis. The Justice Department sued S&P in February 2013 on charges that the rating agency provided misleading ratings on mortgage products and derivatives central to the collapse of the banking sector.