USA: U.S. stocks rise after the Federal Reserve says the economy is stabilizing

Record ID: 186963

  • Title: USA: U.S. stocks rise after the Federal Reserve says the economy is stabilizing
  • Date: 13th August 2009
  • Summary: NEW YORK, NEW YORK, UNITED STATES (AUGUST 12, 2009) (REUTERS) (SOUNDBITE) (English) MARIA FIORINI RAMIREZ, PRESIDENT, MFR INC., SAYING: "Well I think it was widely anticipated that the FED would leave the interest rates where they are. And most likely I think in the quarters ahead they will leave the interest rates the same also. I think the comments were more optimistic than the June FOMC meeting, but I think that would characterize them as cautiously optimistic. You know we're bouncing off the bottom, I think that soon this will pave the way for tightening for sure. But I think we're quite far from there."
  • Embargoed: 28th August 2009 13:00
  • Keywords:
  • Location: Usa
  • Country: USA
  • Topics: Economic News
  • Reuters ID: LVA4AWKRMGHCWJTQVBXB7JX4ZZIR
  • Story Text: Wall Street rises after Fed says economy is stabilizing.
    U.S. stocks powered higher on Wednesday (August 12) as the Federal Reserve said it saw signs of a more stable economy.
    Stocks had been on track to close at their highest level in 10 months, led by technology and financials, but shares lost steam in the last half hour of trading.
    Financials .GSPF was the top-performing sector on the S&P 500, up 2 percent, after a 3.5 percent slide on Tuesday. Allstate Corp rose 6.3 percent to 28.42 dollars (USD) after Bank of America-Merrill Lynch upgraded the insurer to "buy" from "neutral."
    The Dow Jones industrial average gained 120.16 points, or 1.30 percent, to 9,361.61. The Standard & Poor's 500 Index .SPX rose 11.46 points, or 1.15 percent, to 1,005.81. The Nasdaq Composite Index added 28.99 points, or 1.47 percent, to 1,998.72.
    The S&P is up about 49 percent from its more than 12-year closing low set on March 9.
    The Federal Reserve said the economy was leveling out, and it left interest rates unchanged at the end of its two-day policy meeting.
    "I think it was widely anticipated that the FED would leave the interest rates where they are. And most likely I think in the quarters ahead they will leave the interest rates the same also. I think the comments were more optimistic than the June FOMC meeting, but I think that would characterize them as cautiously optimistic. You know we're bouncing off the bottom, I think that soon this will pave the way for tightening for sure. But I think we're quite far from there," said Maria Fiorini Ramirez, the president, MFR Inc.
    The Fed also said it will extend the duration but not the size of a program to buy long-term government debt, which is part of its effort to revive credit and stimulate the economy.
    Shares of Applied Materials rose 3.3 percent to 13.66 dollars (USD) after the maker of chip equipment said it would at least break even this year thanks to new orders and deep cost cuts.
    Shares of luxury home builder Toll Brothers soared 14.4 percent to 23.42 dollars (USD) after it said its net signed contracts rose in the third quarter, the first increase in four years. The Dow Jones home construction index .DJUSHB jumped 5 percent.
    Shares of Macy's Inc rose 6 percent to 16.40 dollars (USD) after the department store operator posted better-than-expected earnings and raising its outlook.
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2011. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: None
Register