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NEW YORK (AP) — The Federal Reserve reassured stock market investors Wednesday that the economy is improv- ing and that interest rates will stay low. Stocks recovered from an early slide to end moderately higher after the Fed issued a more upbeat assessment of the economy following a two-day meeting on interest rates. The Dow Jones industrial average rose 42 points. Treasury prices also reversed direction and began falling as investors withdrew money from safe haven holdings. The Fed's statement that "economic activity has continued to strengthen" since its last meeting injected some calm into a nervous mar- ket. Stocks have fallen in five of the last eight days as investors question what effect a more assertive Washington will have on Wall Street. Some investors are also concerned that stocks have risen too fast in a 10-month climb that has left the Standard & Poor's 500 index up 62.2 percent. The Fed left interest rates near zero, as expected. Analysts said that a dissenting vote on the decision from Kansas City Federal Reserve President Thomas Hoenig was a sign that the economy is improv- ing enough to at least dis- cuss boosting the key lending rate. "That means there are a couple of people who feel like that the econo- my is getting better at a nice rate that no longer warrants these exception- ally low rates," said Jamie Cox of Harris Financial Group in Colo- nial Heights, Va. The Fed also said it still plans to end a pro- gram to lower mortgage rates as expected on March 31. Analysts said that was a sign of confi- dence in a recovery in the housing market. Stocks had fallen ahead of the Fed's announcement as the Commerce Department said sales of new homes fell 7.6 percent in December. The Dow Jones indus- trial average rose 41.87, or 0.4 percent, to 10,236.16. It was down about 40 ahead of the Fed's statement. The Standard & Poor's 500 index rose 5.33, or 0.5 percent, to 1,097.50, while the Nasdaq com- posite index rose 17.68, or 0.8 percent, to 2,221.41. The yield on the benchmark 10-year Trea- sury note, which moves opposite its price, rose to 3.66 percent from 3.63 percent late Tuesday. The dollar rose against most other major curren- cies, while gold fell. In other trading, crude oil fell $1.04 to settle at $73.67 per barrel on the New York Mercantile Exchange. Falling stocks narrow- ly outpaced those that rose on the New York Stock Exchange, where consolidated volume came to 5.4 billion shares compared with 4.8 bil- lion Tuesday. The Russell 2000 index of smaller compa- nies rose 6.22, or 1 per- cent, to 618.38. Overseas markets fell for a second straight day on concerns about China's move to curb bank lending. The coun- try is trying to prevent speculative bubbles and rapid inflation as its economy continues to grow quickly. A slow- down in growth in China could stunt a global eco- nomic recovery. Japan's Nikkei stock average fell 0.7 percent and Hong Kong's Hang Seng lost 0.4 percent. Britain's FTSE 100 fell 1.1 percent, Germany's DAX index lost 0.5 per- cent, and France's CAC- 40 dropped 1.2 percent. 8B – Daily News – Thursday, January 28, 2010 632 Main St., Red Bluff 527-5837 NORTH VALLEY MATTRESS MON.-FRI. 9:00-5:30 • SAT. 9:00 -5:00 • CLOSED SUNDAYS A D D I T I O N A L A D D I T I O N A L A D D I T I O N A L 2 5 % O F F 2 5 % O F F E v e r y t h i n g I n S t o c k E v e r y t h i n g I n S t o c k Friday 29 th Saturday 30 th Sunday 31 st 604 Main St. Red Bluff (corner of Antelope & Main) Breakfast Special $ 3 99 Mexican Restaurant 529-5154 Mon.-Fri., 9am-11am 108 Main Street, Suite C, Red Bluff (530) 527-1121 TWO LARGE PIZZAS & WINGS Plus 2 LITER PEPSI® and FREE CRAZY COMBO® Expires 02/28/2010 Valid at Red Bluff location only. One coupon per order per visit. P.A.W.S. P.A.W.S. (Partners for Animal Welfare & Safety) *P.A.W.S. SAYS....Please read if you plan to apply for a Spay/Neuter Certificate on February 1st • The only number to call for certificates is: 528-8018. Starting 9:00 am sharp! • Please note that we have been having intermittent problems with reception on our number and ATT is attempting to fix the problem, which is in their equipment. In the meantime here are some of the things you can do to help our volunteer get all of your information that is necessary to issue you a certificate: Immediately give her your name and phone number upon reaching her, this way if during your call there is a disturbance, she can keep your call in line and return to you by calling you back later for your detail information. CORRECTION: • Please do not call in at all if you received a certificate in December or January. You are only eligible if your last certificate from us was dated November or earlier and our computer will not accept you request if you are not qualified. • Remember that this is assistance program only and your veterinarian may require a co-payment. The certificates can only be used for spay or neuter and not other veterinary services. Our certificates pay: $30 Male cat, $50 female cat and $60 for male or female dogs. Also we remind you that the certificate should be handled like money and not allowed to become mislaid or lost. We advise also that you start calling at 9:00 am & if busy redial. Stocks end higher on Fed's economic assessment Wall Street