Morning Spy: FOMC Comments Hit Markets (MLHR, BTX, AMR, LL, GCO, RHT, TSL, YGE, AXP, WMT, BAYRY)

Markets have opened to the downside on Thursday, a day after the FOMC released comments about the economy. Chairman Bernanke noted that the economy has weakened and QE2 will end as scheduled. He also said the Fed will continue to monitor the economy and decide if any future policy changes are needed. In other economic news, initial jobless claims increased from 420,000 for the week ending June 11 to 429,000 for the week ending June 18.

Today’s Top tickerspy Indexes:

Business Equipment Stocks (up 1.2% today, see graph): The Index is being led by Herman Miller (MLHR) after the company reported net sales in the quarter of $441.5 million, an increase of 37.3% from the same quarter last fiscal year.

Stem Cell Stocks (up 0.9%, see graph): Shares of BioTime (BTX) are leading the Index higher today on average volume.

Airline Stocks (up 0.5%, see graph): The Index is gaining today after it was announced that 28 countries will release 60 million barrels of oil from strategic reserves. This has caused the price of oil to tumble, which will reduce costs for airlines. The Index is being led by AMR (AMR), which is trading on above average volume.

Home Improvement Retail Stocks (up 0.4%, see graph): Lumber Liquidators Holdings (LL) is leading the Index today after Stifel Nicolaus upgraded the company to buy and gave it a $31 price target. Also performing well today is the Apparel Retail Stocks Index, which is getting a boost from Genesco (GCO) after the company announced it will be acquiring Schuh Group Ltd.

Today’s Top Market Headlines

Red Hat Sales to Triple to $3 Billion in Five Years, CEO Whitehurst Says: Red Hat (RHT), the largest seller of Linux software, aims to triple sales to $3 billion in five years, helped by the rising popularity of cloud computing, Chief Executive Officer Jim Whitehurst said.

Trina: Brigantine Says Buy, Preferable to Yingli: Brigantine Advisors Ramesh Misra yesterday initiated coverage of Chinese solar energy technology makers Trina Solar (TSL) and Yingli Green Energy Hldng (YGE), giving a Buy to Trina and a Hold to Yingli.

A Start-Up Matures, Working With Amex: American Express (AXP) cardholders will receive discounts at certain shops and restaurants on their cellphone through an alliance with Foursquare.

Li & Fung Says Wal-Mart May Gain Amid Weakening U.S. Recovery: Li & Fung Ltd., the world’s biggest supplier of clothes and toys to retailers, said Wal-Mart Stores (WMT) may benefit from a flagging U.S. economic recovery.

GSC Chapter 11 Trustee Settles With SEC Over Marketing of Defaulted CDOs: GSC Group Inc.’s federal trustee reached a settlement with the U.S. Securities and Exchange Commission over the bankrupt investment firm’s marketing of collateralized debt obligations that defaulted in 2008.

Bayer Shares Fall on Study Results for Rival Drug to Xarelto: Bayer AG (BAYRY) shares fell the most in more than two years after a rival to the German drugmaker’s Xarelto blood thinner beat an older medicine in a study.

Tags: AMR, AXP, BAYRY, BTX, GCO, LL, MLHR, RHT, TSL, WMT, YGE