News Summary: Dow climbs 206 after Fed stimulus
DOW SPIKE: The Dow Jones industrial average rose 206 points after the Federal Reserve announced a third round of bond-buying to stimulate the economy.
FED ACTION: The Fed says it will spend $40 billion a month to purchase mortgage securities because the economy is too weak to reduce high unemployment. It has also extended its pledge of super-low interest rates into 2015.
MORE TO COME: If history is any guide, stocks could rally further. In the three months following March 2009, when the Fed said it would expand its first round of buying, the S&P 500 rose 18 percent. In the three months after hinting at a second round of buying in August 2010, the S&P rose 14 percent.
