YAHOO [BRIEFING.COM]: Stocks shook off a listless start to extend their four-month highs, but they failed to sustain gains in the face of resistance. Not even a pledge of support from the FOMC and better-than-expected housing start and building permit data could prop up the major averages.

Trade started on a rather dull note as the major averages made a modest slip in the opening minutes. Losses were generally contained as the S&P 500 was supported at the 1136 to 1138 zone.

Action was also constricted by caution ahead of the latest FOMC policy statement, but the major averages made some sharp swings with the release of the statement. To no surprise, the target interest rate was left unchanged at the range 0.00% to 0.25%. Consistent with past statements, the Fed stated that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels for the federal funds rate for an extended period. However, the statement went on to indicate that the Fed is prepared to provide additional accommodation if needed.

Though no specific measures were stated, the Fed's expression of support attracted enough buyers to drive the S&P 500 to its best level since May. However, buyers backed away as the benchmark index lost momentum near the 1150 line.

Treasuries also swung higher with the release of the policy statement, but they maintained their gains into the close. The benchmark 10-year Note netted a full point and saw its yield drop back below the 2.60% level for the first time in about 10 days.

The dollar was dropped for a 1.0% loss. It had already been down before the FOMC made its announcement because of a stronger euro following a series of successful sovereign debt offerings from Ireland, Greece and Spain.

Better-than-expected housing starts and building permits during August were overshadowed by the FOMC announcement, though construction materials plays (+3.1%) benefited from the data. Housing starts climbed 10.5% month-over-month to an annualized rate of 598,000, and building permits increased 1.8% month-over-month to an annualized rate of 569,000.

Financials comprised the worst performing sector of the session. The sector's 1.0% loss ate into its 2.0% gain from the prior session.

In contrast, airline stocks were strong. An increased profitability forecast for 2010 from The International Air Transport Association sent the Amex Airline Index up 1.9% to its best level in almost three years.

Soft commodities were the largest advancing sector in commodities today as it posted a 1.9% gain, led higher by a 6.2% rally in Nov orange juice futures.

Today's pit session for Dec gold -which finished lower by 0.4% to $1274.30 per ounce, and Dec silver -which shed 0.7% to settle at $20.64 per ounce, was pretty quiet for both precious metals. However, in after-hours trade, a sell off in the dollar index, prompted by the FOMC decision to keep rates unchanged, both metals spiked into positive territory. The continuous gold contract traded to a new all time high at $1288.50.

Nov crude oil ended lower by 1.4% to $74.94 per barrel. It sold off to its lowest levels heading into the close of pit trade. Oct natural gas rallied for 1.8% to close at $3.93 per MMBtu. It recouped some of its losses from yesterday's sizeable sell off.

Advancing Sectors: Telecom (+0.3%), Industrials (+0.2%), Health Care (+0.1%)
Declining Sectors: Financials (-1.0%), Utilities (-0.5%), Consumer Discretionary (-0.4%), Materials (-0.4%), Energy (-0.1%), Tech (-0.1%), Consumer Staples (-0.1%)DJ30 +7.41 NASDAQ -6.48 NQ100 +0.00% R2K -0.8% SP400 -0.6% SP500 -2.93 NASDAQ Adv/Vol/Dec 983/2.14 bln/1636 NYSE Adv/Vol/Dec 1063/1.05 bln/1900