YAHOO [BRIEFING.COM]: After starting the day strong, the stock market sold off sharply midday. The major averages climbed higher toward the end of the session, but the Dow still ended modestly lower and the S&P 500 only managed a slight gain.

The Nasdaq was a leader for most of the day following Oracle's (ORCL 21.26, +1.39) better-than-expected fourth quarter results and upside first quarter earnings per share guidance after the close last night. Other large-cap tech stocks also fared well, including Apple (AAPL 136.22 +2.21), Intel (INTC 16.10 +0.29), and Cisco (CSCO 18.61 +0.04).

After a couple of slow days in terms of noteworthy, material news items, there were a few market-moving events today, including the release of the FOMC policy statement. The major averages were putting in solid gains prior to the release, but the market moved decidedly lower afterwards. While the statement said that the pace of economic contraction is slowing, it also stated that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period of time. The Fed left the fed funds rate unchanged at 0.00% to 0.25%, as expected.

While growth remains the Fed's policy concern, the wording of the June directive can be characterized as balanced since it provides the Fed the leeway to move as it sees fit based on incoming economic data and changes in the financial markets.

The FOMC also stated that its Treasury purchase program size remains unchanged. That pressured Treasuries and took the benchmark 10-year Note from positive ground to negative ground and pushed its yield up more than 10 basis points to 3.69%.

There was also some key economic data out today. Durable goods orders for May showed a surprise 1.8% increase and durable goods less transportation increased a better-than-expected 1.1%. New orders for durable goods increased 1.8% in May and were up 1.1%, excluding transportation. That was good news from the standpoint that each number easily topped the consensus estimates, which called for a 0.9% decline in total orders and a 0.5% decline, excluding transportation. Shipments, though, were still weak as they declined -2.1% to $169.9 billion.

Shortly thereafter, May new home sales data were released, which showed an annualized rate of 342,000 units, below the 360,000 unit consensus. Given the revisions to the prior month, new home sales were down 0.6% month-over-month versus an expected increase of 2.3%. Stocks initially sold off following the new homes data, but quickly rebounded and resumed their strength.

In terms of leading sectors, materials stocks (+0.8%) were strong today despite considerable weakness from Monsanto (MON 76.08 -3.22), which reported third quarter results that topped consensus expectations. However, the company typically carries high expectations, and it only reaffirmed its guidance, which may have been viewed as a disappointment to participants.

Energy stocks finished flat as oil and gas refiners (-3.5%) undercut the sector. Drillers (+1.1%) were strong, though.

Looking ahead to tomorrow morning, there are more economic releases that will garner some attention. At 8:30 AM ET, initial claims are scheduled to be released with current expectations at 600,000, and the final first quarter GDP number will be released, expected to remain at -5.7%.DJ30 -23.05 NASDAQ +27.42 NQ100 +1.6% R2K +1.1% SP400 +1.3% SP500 +5.84 NASDAQ Adv/Vol/Dec 1584/2.16 bln/1099 NYSE Adv/Vol/Dec 2188/1.10 bln/839