Building materials stocks edge up after Fed moves

Shares of companies that supply building materials were mostly in the green Tuesday after the Federal Reserve left a key interest rate unchanged.

The central bank said Tuesday it was keeping its target for the federal funds rate, the interest that banks charge on overnight loans, unchanged at 2 percent. Some had expected the Fed to trim the rates to appease battered markets reeling from a meltdown in the financial services sector.

While the Fed noted that financial markets are increasingly strained and labor markets have seen further softening, it declined to lower the rate, saying its policy moves will foster moderate economic growth over time. The Fed last lowered the federal funds rate on April 30 by one quarter of a percentage point to 2 percent. The last time the rate stood below 2 percent was in 2004.

Shortly after the Fed decision was announced, USG Corp. was up 3 cents to $28.30 and Mowhawk Industries Inc. rose 41 cents to $68.70. NCI Building Systems Inc. rose 32 cents to $35.81 and Owens Corning rose $1.18, or 5.2 percent, to $23.84.

Bucking the trend, Masco Corp. shares fell 30 cents to $18.31.