Closing Market Commentary For 09-16-2013
Gary is off this afternoon, so the closing market commentary comes from our syndicate partner Investing.com.
U.S. stocks rose on Tuesday after the Federal Reserve kicked off a two-day policy meeting, with many betting the U.S. central bank will make only slight adjustments to its monthly bond-buying program, which has boosted stock prices by driving down long-term interest rates.
At the close of U.S. trading, the Dow Jones Industrial Average finished up 0.23%, the S&P 500 index rose 0.42%, while the Nasdaq Composite index rose 0.75%.
Earlier Tuesday, the Fed opened its eagerly-awaited monetary policy meeting amid expectations the U.S. central bank will announce plans to taper its USD85 billion monthly bond-buying program, which has boosted stocks over the past year.
However, consensus was widespread that if the Fed does decide to trim the amount of bonds it buys a month to spur recovery, it will do so by a small amount, likely around USD10 billion, which could still allow for further stock-market gains down the road.
Few, if any, expect the Federal Reserve to hike interest rates any time soon.
Elsewhere, stock markets took in stride data revealing that the U.S. consumer price index rose by 0.1% in August, missing expectations for a 0.1% gain.
The core consumer price index, which is stripped of volatile food and energy prices, rose 0.1% in August, in line with forecasts.
Leading Dow Jones Industrial Average performers included Alcoa, up 1.85%, American Express, up 1.80%, and Intel, up 1.54%.
The Dow Jones Industrial Average’s worst performers included UnitedHealth Group, down 1.08%, IBM, down 0.55%, and Procter & Gamble, down 0.40%.>
European indices, meanwhile, finished lower.
>After the close of European trade, the EURO STOXX 50 fell 0.09%, France’s CAC 40 fell 0.16%, while Germany’s DAX 30 finished fell 0.19%. Meanwhile, in the U.K. the FTSE 100 finished down 0.80%.
On Wednesday, all eyes will focus on the Federal Reserve. Chairman Ben Bernanke is to hold a press conference after the rate announcement.
Elsewhere, the U.S. is to release official data on building permits and housing starts.
