In the U.S. all eyes were on the Federal Reserve Wednesday with the central bank’s policy-setting committee set to make its policy statement at the conclusion of its two-day meeting at 2 p.m.
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Fed officials said they felt the US economy had overcome a first-quarter slowdown and was “expanding moderately” despite a downturn in the energy sector and headwinds from overseas. The decision to leave rates unchanged was unanimous. “If the Fed doesn’t raise rates in September, I think we’re looking at some time mid next year”.
In an environment with relatively low interest rates and an expanding economy, stocks remain more attractive than bonds, according to Wayne Lin, a portfolio manager at QS Investors.
The Dow Jones Industrial Average rose 121.12 points (0.69 per cent) to 17,751.39.
The Standard & Poor’s 500 index gained 15 points, or 0.7%, to 2,108.
The Nasdaq composite fell 48.85 points, or 1 percent, to 5,039.78. Analysts expect a 4% drop in second-quarter earnings, shallower than 10 July calls for a 6.4% fall.
The Dow is down 192.80 points, or 1.1 percent. The shares led a sector-wide rally for major aerospace stocks.
Citrix Systems reported better-than-expected earnings for the second quarter and raised its outlook for the year. Gilead Sciences rose $2.64, or 2.3 percent, to $115.71.
Elsewhere, the dollar rose a touch against the yen, rose about 10% against the euro and fell slightly against the pound, while gold futures fell 20 cents to settle at $1,096.20 an ounce.
A report on Thursday showed gross domestic product (GDP) rose at a 2.3% annualized rate, and a revised 0.6% advance in the first quarter wiped out a previously reported contraction.
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Commodity prices are likely to boost the local market, with West Texas crude oil rising 1.7 per cent to $US48.72 a barrel. Visit MarketWatch.com for more information on this news. Brent crude, a benchmark for worldwide oils used by many U.S. refineries, rose 8 cents to close at $53.38 in London.
