Quantcast
Latest Stories

US stocks surge ahead of Fed meeting



In this Monday, June 10, 2013 photo, trader Edward Landi check a screen in a booth on the floor of the New York Stock Exchange. Global stock markets traded fitfully Tuesday June 18, 2013 as investors watched for signs of a possible change in U.S. stimulus efforts by the Federal Reserve. (AP Photo/Richard Drew)

NEW YORK—US stocks Tuesday rose decisively as investors bet that the Federal Reserve will stay the course the next day on its economic stimulus policy.

The Dow Jones Industrial Average surged 138.38 (0.91 percent) higher to 15,318.23.

Tuesday’s session marked the sixth in a row that the Dow moved more than 100 points in a single session.

The broad-based S&P 500 jumped 12.77 (0.78 percent) to 1,651.81, while the tech-rich Nasdaq Composite Index rose 30.05 (0.87 percent) to 3,482.18.

The Federal Reserve’s policy panel Tuesday kicked off a two-day meeting that will culminate in a Wednesday policy statement and news conference with Federal Reserve Chairman Ben Bernanke.

Investors in recent weeks have speculated the Fed would soon taper its $85 billion-a-month bond-buying program.

But the market is now betting the Fed will pull back only in “the distant horizon,” said Art Hogan of Lazard Capital Markets.

Bernanke’s message will be that “things are getting better, but not enough so that we’re going to start tapering.”

Hogan predicted Bernanke would avoid laying out a time frame for scaling back the purchases.

Most of the companies in the Dow rose. The biggest gainers were General Electric (up 2.4 percent) and UnitedHealth Group (up 2.0 percent).

Dell rose 0.5 percent to $13.48 after Carl Icahn called on the company to purchase a majority of outstanding shares for $14 per share in his latest effort to block founder Michael Dell’s go-private plan. Dell has offered $13.65 per share.

Irish biotechnology company Elan’s US-traded shares rose 2.2 percent after US intellectual property investor Royalty Pharma abandoned a bid to acquire it.

US shares of Sony Corp. shot up 3.3 percent after the electronics giant said it would consider spinning off its entertainment division in response to pressure from hedge fund Third Point. Third Point upped its stake in Sony to 6.9 percent from 6.5 percent.

Bond prices were mixed. The yield on the 10-year US Treasury edged up to 2.18 percent from 2.17 percent late Monday, while the 30-year slipped to 3.34 percent from 3.35 percent. Bond prices move inversely to yields.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: close , Finance , Stock Activity , stocks , US



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Drunk passenger triggers Bali hijack alert
  • Businesswoman allegedly killed by husband, brother-in-law
  • Roxas suspended from golf club for outburst over P5,000 guest fee
  • SC reschedules oath-taking of new lawyers
  • Ex-COA chief seeks bail after arrest for plunder
  • Sports

  • Guiao fined P100,000 for ‘mongoloid’ comment vs Meralco forward
  • Hawks and Grizzlies revel in home wins
  • Floyd: Manny’s power gone
  • Michael Phelps loses to Lochte in comeback meet
  • Sharapova advances to Stuttgart quarterfinals
  • Lifestyle

  • ‘Recovered’ Banksy works on display ahead of sale
  • Marinduque: Visiting the ‘palm of the ocean’
  • First at Vatican in 60 years
  • How Jing Monis Salon gave Krissy the pixie
  • Want to be a supermodel? Work on your inner beauty, says Joey Espino
  • Entertainment

  • Paul McCartney to play at Candlestick concert
  • Kristoffer Martin: from thug to gay teen
  • Has Ai Ai fallen deeply with ‘sireno?’
  • California court won’t review Jackson doctor case
  • Cris Villonco on play adapted from different medium
  • Business

  • PAL hailed for ban on shark fin cargo
  • BSP to change tint of P100 bill
  • Nielsen sees car buying boom in the Philippines
  • How author of best-seller exposed ‘one percent’ economic elite
  • Bangko Sentral readies new bank lending rules
  • Technology

  • Cloud strength helps Microsoft earnings top Street
  • Vatican announces hashtag for April 27 canonizations
  • Enrile in Masters of the Universe, Lord of the Rings?
  • Top Traits of Digital Marketers
  • No truth to viral no-visa ‘chronicles’
  • Opinion

  • Corruption not invincible after all
  • Editorial Cartoon, April 25, 2014
  • No deal, Janet
  • Like making Al Capone a witness vs his gang
  • MERS-CoV and mothers
  • Global Nation

  • Plane lands at Bali airport in suspected hijacking—Indonesia air force
  • Obama lands in Seoul as N. Korea nuclear test fears grow
  • Militant protests vs Obama, US set
  • Filipinos second-shortest in Southeast Asia
  • China welcomes PH apology
  • Marketplace