Wall Street stocks marched higher Wednesday, greeting US Federal Reserve meeting minutes that suggested a likely interest rate increase in December based on greater confidence in the economy. The S&P 500 index got closer to 2,100 mark, as it broke above the resistance level 2,080.
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In the Dow, gains in shares of Intel and those of Coca-Cola, last trading 3.6 percent and 2.2 percent higher respectively, outweighed slides in shares of UnitedHealth and those of Pfizer, down 5.8 percent and 3.4 percent respectively. Meanwhile, the yield on the 10-year U.S. Treasury bond declined 0.010 percentage point to 2.259%.
The minutes of the Fed’s October 27-28 meeting showed most participants felt conditions for a rate hike “could well be met by the time of the next meeting”. A number of Fed officials voiced their commitment to raising rates gradually in the following days. That it’s going to be a gradual and slow hike.
The S&P 500’s health-care sector dropped 1.7% after UnitedHealth Group told investors it expected major losses from Affordable Care Act exchanges and will consider withdrawing from them.
St. Louis Fed President James Bullard and NY Fed President William Dudley are slated to speak at separate events.
Investors will also closely eye oil prices, as the December futures contract rolls off the board, and January becomes the front-month contract at the Nymex at the end of the session.
The Fed is widely expected to raise interest rates at its December meeting as data pointed to a recovery in the United States labor market and a modest rise in inflation last month. But investors recently experienced a shift in perspective. “That means they’re more confident in our economy now”.
Abercrombie & Fitch (ANF.N) surged 25 percent. Economic reports since the Fed refrained from a rate rise in October have been encouraging, with payrolls logging the biggest gain this year and unemployment falling to 5 percent.
Shares in Gap Inc.
Ross Stores soared nine percent, trading at $50.30 and Foot Locker jumped 7.50 percent, trading at $66.15, following the release of their respective quarterly reports. Fairchild Semiconductor global Inc. rallied 6.8 percent afterON Semiconductor Corp. agreed to buy the company for about $2.4 billion.Newmont Mining Corp. rose 2.4 percent after the company met Indonesian export requirements.
In overseas trading, stock markets across the Asia-Pacific region moved notably higher on Thursday on the heels of the overnight rally on Wall Street.
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Other markets: European stocks (http://www.marketwatch.com/story/european-stocks-set-for-best-weekly-gain-in-a-month-2015-11-20) logged their best weekly gains in a month.
