MARKETWATCH

Stocks rose and bonds fell as the Federal Reserve decided not to raise interest rates at a meeting of the Open Market Committee Tuesday. Many analysts had predicted the Fed would hike both the Federal Funds and Discount rates by a half point in order to nip inflationary pressures in the bud. But though the Fed did not act at its latest meeting, look for at least one further rate increase --the sixth this year -- at its next meeting Nov. 15, which is conveniently right after the midterm elections. Following the announcement that rates will stay put for now, the Dow Jones Industrial Average jumped 13.46 points to 3863.04. Big gainers included Alcoa, International Paper and Merck, each up a point. The S&P 500 rose 1.23 to 462.05. NASDAQ stocks dipped 0.26 to 755.37. Meanwhile, Treasury bond prices fell -- and yields climbed -- as bond traders registered their disappointment over the Fed's decision not to stifle inflation. The yield on the benchmark 30-year Treasury rose to a 27-month hig