Market Wrap: FOMC Sees 'Signifcant' Downside; Morgan Stanley, MBIA Play Nice; Best Sell Best Buy's Earnings Flop

Market wrap-up for December 13th

End of the Day: Dow Jones down 66.5 to 11,954.94; Nasdaq down 33.0 to 2,579.27; S&P 500 down 10.7 to 1,225.73

The following is a brief summary of events moving markets today:

• FOMC firm on rates, not on economy: With about as much enthusiasm as your Aunt Em taking a sip of tea and calling it "good" rather than simply "nice," the FOMC board said there have been signs "the economy has been expanding moderately," but "strains in global financial markets continue to pose significant downside risks to the economic outlook." The Fed took no rate action, and doesn't expect to until mid-2013, though that's probably subject to change.
  
  We wonder if they could pull off negative interest rates, and give a little back to, you know, "the people." Click here for more.
  
  
• Morgan Stanley (NYSE: MS) entered a comprehensive settlement with MBIA (NYSE: MBI) in resolving outstanding legacy exposure. According to the release: "MBIA will withdraw its residential mortgage backed securities related suit against Morgan Stanley and Morgan Stanley will withdraw from suits challenging MBIA’s restructuring. The pre-tax loss on the settlement will approximate $1.8 billion ($1.2 billion after-tax) in the current quarter. Importantly, the settlement has the effect of significantly reducing risk-weighted assets and releasing the equivalent of approximately $5 billion of capital under the Basel Committee’s proposed Basel III framework, thereby increasing the pro forma Tier 1 Common ratio under Basel III by approximately 75 basis points by the end of 2012. Under current Basel I standards, the Tier 1 Common ratio will be reduced by approximately 30 basis points."
  
  Click here for more from the release.
  
  
• Best Buy gets Best 'Sold': Best Buy Co. (NYSE: BBY) shares got slammed Tuesday following a third-quarter earnings miss and maintained outlook. The stock was down as much as 15.8 percent on the session. Revenue for the big box retailer increased 2 percent from $11.89 billion during the same quarter last year to $12.10 billion. Adjusted earnings were 47 cents per share. The Street was expecting revenue of $12.14 billion and earnings of 51 cents per share.
  
  
• It's the sanctions. Really.: Nokia Siemens, the joint venture of Nokia (NYSE: NOK) and Siemens (NYSE: SI), is said to be adopting a new policy on Iran starting on January 1, 2012: get the heck out of there. Commenting on the move, Nokia Siemens said, "tougher global sanctions are "making it almost impossible for Nokia Siemens Networks to do business with Iranian customers."
  
  
• USA! USA ! USA!: The euro hit a yearly low, closing at $1.3021 on Tuesday from $1.3188 on Monday.

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