U.S. stocks closed lower Tuesday, paring deeper losses, as economic concerns kept investors on tenterhooks.  However, the markets managed to contain losses as a brighter forecast from the Federal Reserve assured investors about the sustainability of the recovery.  Also, a weaker dollar helped shares of commodity-related and industrial companies. 

The markets only gathered steam in the afternoon after the Fed released minutes from its latest meeting.  While pledging to keep interest rates at record low levels, the Fed policymakers, however, noted record low interest rates could lead to excessive risk-taking in financials markets.  Nevertheless, the Fed raised its outlook for economic growth during the second half of this year, but said unemployment levels will remain high.  The Fed lowered its unemployment estimates to 9.3%-9.7% in 2010 from 9.5%-9.8%, noting the economy continues to improve.

On Tuesday, the Dow Jones industrial average fell 17.24 points, or 0.2%, to 10,433.71.  The Standard & Poor’s 500-stock index fell 0.59 points, or 0.1%, to 1,105.65, and the Nasdaq composite index fell 6.83 points, or 0.3%, to 2,169.18.  The CBOE Vix index dropped to its lowest in fourteen months, off 3.3% to 20.47.  On the NYSE volume dropped to 0.952 billion shares, with declining issues ahead of advancing shares by an eight to seven margin.

Tuesday saw volatile and a low volume trading, a trend that is likely to continue through the holiday-shortened week.  All financial markets are closed Thursday for Thanksgiving.

On Tuesday, healthcare companies helped offset drops in financial and industrial shares.  Medtronic Inc. (NYSE:MDT) jumped more than 7% after the medical device maker reported a surprise 59% increase in its quarterly profit and raised its full-year outlook.  Shares in the company rose $2.94, or 7.3%, to $43.25.

Among financial companies, JPMorgan Chase (NYSE:JPM) led the declining issues in the Dow average, falling 1.9% to $42.48.  Bank of America (NYSE:BAC) fell 1.2% to $16.10, while Morgan Stanley (NYSE:MS) dropped 1.5% to $32.12. Fifth Third Bancorp (NYSE:FITB) fell 1.6% to $10.01.

Safe-haven assets such as Treasuries and gold prices rose.  Treasuries performed well after the $42 billion auction in 5-year notes received a strong response.  Gold prices hit a fresh record close for the eighth consecutive day, closing up $1.90 at $1165.50 per ounce. 

Zacks Investment Research

"A few stocks have really grabbed my attention; they have core assets that generate lots of cash, and serve their investors a good cut of the profits with regular streams of big dividends," says income specialist Neil George.

In his Stocks that Pay You, the advisor reviews three income oppotunities -- a holding company, an investment firm, and a medical center REIT -- that he calls, "fabulous finds".

"I'll start with a company, Compass Diversified Holdings (NASDAQ: CODI), that as its name implies - holds stuff.

"Specifically, it holds ownership in small set of operating companies in varied but basically solid businesses.

"They include a temporary and contract worker company, a medical device manufacturer, a research equipment purveyor and a couple other similarly boring but steady businesses.

"And the holding company only buys into businesses without the need for heavy leverage, and in sectors where the businesses have control of their individual markets.

"The outcome is steady cashflows and a very low level of debt - and lots of cash and cash-like assets on the books. Return on capital is running at over 13% -- over 17% on the common equity.

"And from those returns, investors get a nice fat cut - quarter after quarter, even during the past two years of economic and market hell. In fact dividend growth is running up over 50% in the past three years. Trading around 10.50 a share, it pays a yield of over 12.9%.

"Next is AllianceBernstein Holding LP (NYSE: AB), which runs a number of investment funds including two of my favorite bond funds: the AllianceBernstein Global High Income Fund and the AllianceBernstein National Municipal Income Fund.

"But while both of these funds are solid buys, I'm also suggesting that you might want to share in the success of the managers of these funds by getting a piece of AllianceBernstein itself.

"Because the more these and their affiliated funds perform and grow - the bigger the revenue flows will continue to be for the management company.

"AllianceBernstein is structured as a publicly traded partnership which in turn owns the shares of the operating fund company.

"This is a great means for individual investors to gain access to ready and rising cashflows while taking advantage of tax rules for partnerships that avoid the double-taxation of regular corporations.

"The dividend flows vary by quarter as the funds pay their fees to the LP - but what counts is how they add up over the entire year and keep piling up year after year.

"Right now that means you're buying into a dividend yield of over 10% -- with more coming as AB's funds continue to perform and grow.

"Last up in this eclectic garage sale is a real estate company. But I'm not writing about a commercial or residential deal that has to rely on some sort of economic upturn to make it work. Instead, this company is structured as another tax-advantaged investment in the form of a REIT -- focused on medical facilities.

"And not just general hospitals but very targeted cost-saving surgical procedure centers and specialized care facilities. These are the sorts that will stay in demand with or without more government control of the medical markets.

"And in fact, the argument might well be made that these are the sorts of operations that are working to streamline healthcare services, thus trimming costs to insurers -- be they private or Uncle Sam.

"Medical Properties Trust (NYSE: MDT) has seen its shares down last year with the move by the entire market to discount property companies.

"But since then, the realities of its holdings and its cashflows have been bringing it back strongly. Dividend flows are ample and high at over 9%. Just the medicine your portfolio needs."

(BSX) Boston Scientific Earns FDA Clearance

Enzo Biochem, Inc. (NYSE:ENZ) announced today that its Board of Directors approved the termination of Shahram K. Rabbani’s services as the Company’s Secretary and Treasurer, respectively, effective immediately.

(MDT) Medtronic Beats Analysts Estimates