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US stocks end higher ahead of Fed meeting
Source: Agencies |
September 12, 2012, Wednesday
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US stocks ended higher yesterday as investors looked ahead to two events sure to move markets this week: a Federal Reserve meeting and a court decision on whether Germany can help support its struggling neighbors.
The Dow Jones industrial average rose 69.07 points to close at 13,323.36. The average of 30 large company stocks has already gained 1.8 percent to start September, a month which is usually dismal for stocks. Bank of America led, rising 5 percent, or 45 cents, to $9.03.
In other trading, the Standard & Poor's 500 index rose 4.48 points to 1,433.56. The Nasdaq composite increased 0.51 of a point to 3,104.53.
Federal Reserve officials will gather for a two-day meeting today. Many expect the central bank will launch a new effort to revive the sluggish economy.
Germany's high court is expected to rule today on whether the country can participate in a European bailout fund.
"It's going to get interesting this week," said Randy Frederick, managing director of active trading and derivatives at the brokerage Charles Schwab. He expects the Fed will make some sort of move, especially after the government reported Friday that US employers added fewer than 100,000 jobs in August.
"Prior to the employment report, people weren't as sure," Frederick said. "I am definitely on the majority side here. There's some sort of easing coming."
The assumption that the Fed will announce new stimulus measures is so widespread that some worry the market could take a plunge if the bank fails to deliver.
"These are the things that make you nervous, when markets are going strong in anticipation of news," said Ron Florance, managing director of investment strategy at Wells Fargo Private Bank in Scottsdale, Arizona.
The Commerce Department reported yesterday that exports to Europe dropped 11.7 percent in July, stoking concerns that troubles there could smother the US recovery. Overall US exports fell 1 percent to US$183.3 billion, lowered by weaker sales of autos, telecom equipment and heavy machinery.
Morgan Stanley and Citigroup rose after the banks settled a dispute over their jointly owned brokerage firm, Morgan Stanley Smith Barney. The deal cleared the way for Morgan Stanley to buy Citigroup's 49 percent stake. Citi gained 83 cents to US$32.66. Morgan Stanley rose 64 cents to US$17.25.
A profit warning from luxury clothing chain Burberry helped pull down other high-end retailers in early trading. Burberry said slowing sales to China will likely weaken earnings. Ralph Lauren lost US$4.09 to US$156.22. Tiffany & Co. sank 78 cents to US$62.26.
Among other stocks making moves was Hewlett-Packard, which gained 52 cents to US$17.95, up 3 percent. The computer and printer maker said late Monday that it will cut 29,000 jobs by October 2014, or 2,000 more than it had previously planned. Sales of personal computers have slumped as people favor smartphones and lightweight tablet computers.
The Dow Jones industrial average rose 69.07 points to close at 13,323.36. The average of 30 large company stocks has already gained 1.8 percent to start September, a month which is usually dismal for stocks. Bank of America led, rising 5 percent, or 45 cents, to $9.03.
In other trading, the Standard & Poor's 500 index rose 4.48 points to 1,433.56. The Nasdaq composite increased 0.51 of a point to 3,104.53.
Federal Reserve officials will gather for a two-day meeting today. Many expect the central bank will launch a new effort to revive the sluggish economy.
Germany's high court is expected to rule today on whether the country can participate in a European bailout fund.
"It's going to get interesting this week," said Randy Frederick, managing director of active trading and derivatives at the brokerage Charles Schwab. He expects the Fed will make some sort of move, especially after the government reported Friday that US employers added fewer than 100,000 jobs in August.
"Prior to the employment report, people weren't as sure," Frederick said. "I am definitely on the majority side here. There's some sort of easing coming."
The assumption that the Fed will announce new stimulus measures is so widespread that some worry the market could take a plunge if the bank fails to deliver.
"These are the things that make you nervous, when markets are going strong in anticipation of news," said Ron Florance, managing director of investment strategy at Wells Fargo Private Bank in Scottsdale, Arizona.
The Commerce Department reported yesterday that exports to Europe dropped 11.7 percent in July, stoking concerns that troubles there could smother the US recovery. Overall US exports fell 1 percent to US$183.3 billion, lowered by weaker sales of autos, telecom equipment and heavy machinery.
Morgan Stanley and Citigroup rose after the banks settled a dispute over their jointly owned brokerage firm, Morgan Stanley Smith Barney. The deal cleared the way for Morgan Stanley to buy Citigroup's 49 percent stake. Citi gained 83 cents to US$32.66. Morgan Stanley rose 64 cents to US$17.25.
A profit warning from luxury clothing chain Burberry helped pull down other high-end retailers in early trading. Burberry said slowing sales to China will likely weaken earnings. Ralph Lauren lost US$4.09 to US$156.22. Tiffany & Co. sank 78 cents to US$62.26.
Among other stocks making moves was Hewlett-Packard, which gained 52 cents to US$17.95, up 3 percent. The computer and printer maker said late Monday that it will cut 29,000 jobs by October 2014, or 2,000 more than it had previously planned. Sales of personal computers have slumped as people favor smartphones and lightweight tablet computers.
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