US mkts end with modest gain

CNBC's Margaret Brennan - When the Fed speaks, markets listen but stocks didn’t react much on Wednesday to the decision to keep the Federal Reserve Funds rate at 2%. The Dow Jones industrial average gained by just 4 points and the Nasdaq rose by 33 points getting help from performers like software company Oracle that net income jumped 27% that helped shares rise more than 1% on that news.

The Federal Reserve is keeping the Fed funds rate at 2% and announced that there are risks to increase inflation that took financial shares largely higher. Morgan Stanley and Bank of America did close in the red and shareholders of Countrywide financial approved their company’s takeover by Bank of America today even though the lender faces law suites from at least two states that claimed its stirred customers into risky loans, shares of Countrywide ended lower.  Investors went bargain hunting and bottom fishing for consumer stocks on Wednesday shares of Warner and Target rallied more than 1% and department stores JC Penny and Macy’s gained despite word from CitiGroup that the American consumers will remain weak to 2009.

Oil prices fell more than USD 2 closing at USD 134/bbl after the government inventory report showed a swelling of stockpiles. Shares of Exxon Mobil and Chevron gained despite that news.

Wall Street action:

US stocks didn't react much to Fed's decision to keep rates unchanged at 2%
Dow Jones up 4 pts; Nasdaq up 33 pts
Oracle's net income up by 27%, shares rise 1%
Morgan Stanley and Bank of America down
Countrywide Financials shareholders approve takeover by Bank of America
Shares of Countrywide end lower
Consumer stocks rally
Oil prices fall by more than $2, trading at $134/bbl