U.S. stocks rise ahead of Fed meeting

 

By Kate Gibson, MarketWatch

NEW YORK (MarketWatch) — U.S. stocks rose sharply Tuesday as the Federal Reserve began considering options that could lead to further moves to stimulate the economy.

“The big question is whether the Fed shows enough concern to provide additional stimulus or whether it assesses the current slowdown as a temporary situation that will self-correct,” Fred Dickson, chief market strategist at Davidson Cos., wrote in emailed comments, as the Federal Open Market Committee on Tuesday began a two-day session.


Reuters

Federal Reserve Chairman Ben Bernanke.

“It’s the size and duration of the program that is most important,” said Jeffrey Kleintop, chief market strategist at LPL Financial in Boston. See Kleintop’s ‘size-matters’ message to Fed.

The Dow Jones Industrial AverageDJIA +0.99%  added 106.48 points to 12,848.23, with all but four of its 30 components higher.

The S&P 500 Index SPX +1.12%  rose 13.14 points to 1,357.92, with materials the leading performer among its 10 industry groups.

The Nasdaq Composite COMP +1.25%  added 32.85 points to 2,928.18.

For every stock falling, more than four gained on the New York Stock Exchange, where almost 186 million shares traded as of 11 a.m. Eastern.

The Commerce Department said builders broke ground on fewer new homes in May, but permits for future construction jumped to a near four-year high.  Read full story on housing data.

 

Kate Gibson is a reporter for MarketWatch, based in New York.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s