Dow Ends Up 68 on Fed Official's Remarks

In this photo released by the New York Stock Exchange, Robert Fico, left, the Prime Minister of Slovakia, rings the opening bell with John Thain, CEO of the NYSE Group Inc., Friday Sept. 22, 2006. Fico is in New York for the United Nations General Assembly. (AP Photo/NYSE, Mel Nudelman) (Mel Nudelman - AP)

Early in the session, stocks fell after the National Association of Realtors reported that the median home price for the month was $225,000, compared with a revised $230,000 in July, marking the first year-to-year median price decline since 1995. The drop was the second-biggest in the survey's 38-year history.

Fisher's comments, made after a speech in Monterrey, Mexico, came at an opportune time: With the third quarter ending this week, investors are eager for any boost to the quarter's performance.

Fisher said "the recent tempering of U.S. economic growth to a more sustainable rate ... should act to lower the inflation rate over time." Less inflation means less likelihood the Fed will continue to raise interest rates.

In company news, tobacco stocks fell after a federal judge in New York granted class action status to tens of millions of "light cigarette" smokers for a potential $200 billion lawsuit against tobacco companies. Altria Group Inc. fell $5.26, or 6.4 percent, to $77.06; Reynolds American Inc. fell $2.27 to $59.75; Loews Corp. fell 20 cents to $37.80.

Chiquita Brands International Inc. fell $2.20, or 14 percent, to $13.53 after the company said it would suspend dividend payments and consider selling its shipping business to cut debt. It also said difficult market conditions, including problems with E. coli in spinach, have hurt third-quarter results.

Computer maker Dell Inc. rose 72 cents to $22.16 after the company said it plans to hire another 500 engineers to work in its central Texas product development operations.

Oil companies were mixed as oil prices bounced higher; stocks in the sector have been sliding since late August. Exxon Mobil Corp. rose 15 cents to $65.06; BP fell 14 cents to $65.06 and Chevron Corp. rose 24 cents to $62.18.

The Russell 2000 index of smaller companies was up 8.46, or 1.18 percent, at 727.09.

Overseas, Japan's Nikkei stock average fell 0.01 percent. Britain's FTSE 100 lost 0.41 percent, Germany's DAX index gained 0.31 percent, and France's CAC-40 rose 0.09 percent.

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