YAHOO [BRIEFING.COM]: The major market averages had hugged the neutral line for most of the session, but after Fed Chairman Bernanke completed a press conference that featured reduced GDP forecast stocks rolled over to log sizable losses.

Stocks were locked into a sideways drift for most of this morning and early afternoon. Participants were generally uninspired by the latest update from Greece -- that the country's prime minister was able to keep his position after a no-confidence vote was held last evening. No updates on the implementation of new austerity measures have been made available, however.

Range bound trade was also the result of uncertainty ahead of the latest FOMC Policy Statement, which indicated that members unanimously voted to keep the fed funds target between 0.00% to 0.25% and that exceptionally low levels are expected for an extended period of time. It was also stated that the Fed still plans to complete its purchase of $600 billion of longer-term Treasuries by the end of this month.

Trade remained reserved in the wake of the statement. Action was also subdued during Fed Chairman Bernanke's press conference, during which he announced that the Fed now believes 2011 GDP will range from 2.7% to 2.9%, down from the range of 3.1% to 3.3% that was announced in April. Additionally, unemployment for 2011 is now expected to range from 8.6% to 8.9%, up from the range of 8.4% to 8.7%. Core PCE inflation for 2011 is now expected to range from 1.5% to 1.8%, up from the range of 1.3% of 1.6% that had been forecasted before.

Stocks didn't react immediately to the Fed's revisions. Rather, participants waited until the final hour of the session to start applying pressure. The ensuing selling effort was steady and left stocks to settle at session lows.

Tech stocks and consumer discretionary stocks collectively made up the day's worst performers. Both sectors fell 0.8%. Financials didn't fare much better; they fell 0.7%. Not even energy stocks or basic materials plays were able to hold their gains. Instead, both sectors fell 0.4%.

FedEx (FDX 91.44, +2.31) eased off of its session high, but still settled with a heady gain. The stock's strength was underpinned by a better-than-expected earnings report. CarMax (KMX 32.66, +2.14) and Jabil Circuit (JBL 19.45, +0.60) also outperformed after their earnings reports proved pleasing. Adobe Systems (ADBE 30.01, -2.00) had an upside surprise of its own, but that was overshadowed by the company's commentary about weak demand in emerging markets.

Most of the more closely tracked commodities traded with strength this session, although natural gas prices surrendered an early gain to close pit trade with a 1.6% loss at $4.302 per MMBtu. Crude oil prices bounced to $95.41 per barrel for a 1.3% gain with help from a bullish inventory report.

As for precious metals, gold prices gained 0.5% to close at $1553.50 per ounce, but silver turned a fractional loss in the early going into an even more impressive 0.9% gain to close at $36.70 per ounce. The price of both precious metals has pulled back following the close of pit trade, however.

Advancing Sectors: (None)
Declining Sectors: Consumer Discretionary (-0.8%), Tech (-0.8%), Financials (-0.7%), Consumer Staples (-0.7%), Utilities (-0.7%), Health Care (-0.6%), Industrials (-0.6%), Telecom (-0.5%), Energy (-0.4%), Materials (-0.4%)DJ30 -80.34 NASDAQ -18.07 NQ100 -0.7% R2K -0.8% SP400 -0.5% SP500 -8.38 NASDAQ Adv/Vol/Dec 847/1.62 bln/1672 NYSE Adv/Vol/Dec 1240/856 mln/1759