DOW : 14,511.73 Up 55.91(0.39%)

 























NEW YORK: US stocks recorded solid gains on Wednesday as the Federal Reserve held steady on its policy of economic stimulus.
The Dow Jones Industrial Average gained 55.91 points (0.39 percent) at 14,511.73.

The broad-based S&P 500 picked up 10.37 points (0.67 percent) at 1,558.71, while the tech-rich Nasdaq Composite Index increased 25.09 points (0.78 percent) to 3,254.19.

The Federal Reserve, as widely expected, kept its monetary easing policies in place as it trimmed its 2013 and 2014 growth forecasts for the US economy.
The policies have boosted shares and been seen as a major factor in the Dow's recent record-setting performance.

Barclays predicted the Fed will continue its asset purchases at the current $85 billion-a-month pace through the end of the year, "before beginning to slow purchases sometime in the first half of 2014."

Federal Express fell 6.9 percent after reporting earnings below expectations. The company also gave a tepid outlook for 2013, noting "accelerating customer preference for lower-yielding international services."

American Realty Capital Properties, a real estate investment trust specialising in commercial properties, rose 5.2 percent after announcing that it proposed to buy Cole Credit Property Trust III for more than $9 billion, including assumption of debt.

Homebuilder Lennar Corp. edged up 4.8 percent after reporting solid quarterly earnings and pointing to strong trends in the housing market, such as higher home prices.

Williams-Sonoma leaped 10.3 percent after announcing a 41 percent dividend increase and a three-year $750 million stock repurchase program.

Anadarko Petroleum and its partners moved higher after announcing a significant petroleum discovery in the Gulf of Mexico. Anadarko rose 3.8 percent, Cobalt International leaped 8.1 percent, Marathon Oil added 1.9 percent and ConocoPhillips climbed 1.9 percent.

Valeant Pharmaceuticals gained 2.7 percent after announcing a plan to acquire Obagi Medical Products, which surged 28.2 percent.

Bond prices fell. The yield on the 10-year Treasury rose to 1.94 percent from 1.91 percent late Tuesday, while the 30-year rose to 3.17 percent from 3.13 percent. Prices move inversely to yields.

- AFP/de