Fed Announcement Expected Shortly

1:15pm (EST)

The bulls got a gift this morning as the consumer price index (CPI) for November showed a benign consumer inflation outlook and November housing starts were up.

Consumer prices excluding food and energy were flat in November, signaling that inflation isn’t working its way into the economy. It was the first time that “core” inflation was unchanged after 10 straight monthly increases.

Meanwhile the Commerce Department said construction of homes and apartments rose 8.9% last month.

At midday, the Dow is up 22 points to 10,474, the Nasdaq is showing a 14 point gain to 2,214, while the S&P 500 was up 6 to 1,113.

As far as specific stocks, the Federal Trade Commission is back on Intel’s (INTC, $10.40, down $0.40) case as it has charged the company with illegally using its dominant market position to stifle competition and strengthen its monopoly.

The big news will hit the market in about an hour as the Federal Reserve policymakers wrap up a two-day meeting on our current interest rate policy. Wall Street is expecting the Fed will hold rates near zero.

The Fed’s statement is expected at 2:15pm (EST).

We will be paying close attention to the news and we’ll be back in the morning with all of the trade updates.

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Fed Announcement Expected Shortly

CFTC Disclosure: