Stocks closed lower, after the Federal Reserve released a pessimistic report on regional economic activity. Markets were sensitive to media reports on possible European efforts to leverage their bailout fund. The latest economic report showed CPI was up 3.9%, the biggest annual change in 3 years, while inflation came in as expected, with the CPI rising 0.3% during the month. Housing starts were stronger than expected, while permits for future building fell. Tech stocks put mostly closed in the red, as losses from Apple highlighted the day’s action, while advance in Yahoo and Intel failed to support the sector. Apple fell 5.6% after the earnings that missed analysts’ forecasts. Yahoo and Intel climbed 3%and 3.6% respectively following stronger-than-expected earnings. After the closing bell Ebay fell 3.7% after the co. reported earnings in line with analysts’ estimates. Implied volatility spiked above the 30 level on moderate trading volumes.NEAREST RESISTANCE LEVELS: 59.3, 58.3, 57.8, 56.9
NEAREST SUPPORT LEVELS: 50.0, 53.0,
