Stocks dropped on Thursday after the Federal Reserve raised key interest rates for a ninth straight time and said it would keep to its policy of bumping up rates at a “measured” pace.
The Dow Jones Industrial Average fell 99.51, or 1 percent, to 10,274.97. The Standard & Poor’s 500 Index was down 8.52, or 0.7 percent, at 1,191.33. The Nasdaq Composite Index lost 11.93, or 0.6 percent, to 2,056.96.
As expected, the Fed boosted the federal funds rate by a quarter-point to 3.25 percent. Despite recent signs of economic softness, resulting in part from oil prices near record highs, the Fed’s desire to curb inflation looked like it would keep U.S. interest rates on an upward path for now. Investors had hoped the Fed’s Open Market Committee would set a time frame for ending its rate hikes.
Among local movers, Global ePoint, Inc. rose 5.1 percent to $3.09 after the City of Industry-based security products manufacturer announced that Astrophysics, a company it entered into a letter of intent to acquire, received an order to install 13 of its baggage screening inspection systems at five Superior Courts in Orange County.
Cheesecake Factory Inc. gained 2.3 percent to $34.73 after the Calabasas Hills-based casual dining restaurant chain’s stock was raised to “neutral” from “sell” by analyst Andrew M. Barish at Banc of America. The 12-month price target was set at $35 per share.
And Maguire Properties Inc. edged up 0.9 percent to $28.34 after the L.A.-based real estate investment trust said it completed its sales of office properties in Austin and Phoenix for a total of $183.8 million. The company sold Austin Research Park, a 272,000-square-foot office project, and One Renaissance Square, a 484,000-square-foot office building in Phoenix.
On the down side, WPT Enterprises Inc. sank 3.9 percent to $19.49 after the L.A.-based creator of the World Poker Tour program announced the resignation of Deloitte and Touche LLP as its public accounting firm. WPT said Deloitte decided its involvement in an online gaming venture created audit risks that would require a large investment of time and resources, relative to the company’s size as a client.
