US stocks rise with oil prices ahead of Fed statement
- North American stock markets higher as Fed begins two-day meeting
- Pipeline shutdown in Alabama could send gas prices higher
- Toronto stock market and loonie step back in late morning trading
- Tech leads as stocks edge higher after days of big moves
- Stocks tumble as weaker forecast sends oil prices lower
- Toronto Stock Exchange loses nearly 300 points, Canadian dollar drops
This Monday, July 6, 2015, file photo shows a sign for Wall Street carved into the side of a building in New York. World stocks rose Wednesday, Sept. 21, 2016, after Japan's central bank rejiggered its stimulus policies to have a greater influence over long-term interest rates and as investors looked ahead to the Federal Reserve's policy meeting.
U.S. stocks are higher Wednesday as energy companies rise with the price of oil. Metals prices are also rising as the dollar gets a bit weaker. Investors are waiting for the Federal Reserve to conclude a policy meeting.
KEEPING SCORE: The Dow Jones industrial average added 50 points, or 0.3 per cent, to 18,180 as of noon Eastern time. The Standard & Poor's 500 index picked up 7 points, or 0.3 per cent, to 2,146. The Nasdaq composite rose 10 points, or 0.2 per cent, to 5,250. Stocks rose in morning trading Monday and Tuesday but their gains dissipated both days.
ENERGY: Oil prices jumped as fuel stockpiles shrank and investors hoped that supply gluts are easing, which would allow prices to rise. The Energy Information Administration said oil inventories dropped by 6.2 million barrels and gasoline inventories decreased by 2.5 million barrels last week.
S&P Global Platts says analysts expected oil inventories to grow and gasoline stockpiles to shrink by a smaller amount.
Benchmark U.S. crude added $1.09, or 2.5 per cent, to $45.14 a barrel in New York. Brent crude, used to price international oils, rose 89 cents, or 1.9 per cent, to $46.77 a barrel in London. That helped energy companies, and Anadarko Petroleum rose $2.13, or 3.7 per cent, to $60.41 while Chevron added 88 cents to $98.58.
FED TIME: This afternoon the Federal Reserve wrap up its latest meeting on interest rates. Investors don't expect it to raise rates, so they will keep a close eye on a press conference led by Fed Chair Janet Yellen as they seek hints about the central bank's plans.
BANK OF JAPAN: Japan's central bank made some technical changes that give it more influence over long-term interest rates. It said it will continue trying to stimulate the Japanese economy until inflation is higher than 2 per cent a year, but it didn't reduce interest rates any further. Some analysts thought the central bank would take further steps to bolster economic growth. Those steps could have weakened the yen. Since they weren't, the dollar fell to 100.58 yen from 101.84 yen.
ADOBE JUMPS: Software maker Adobe Systems climbed after it raised its forecasts for the year. Adobe also reported solid third-quarter results. Its stock climbed $6.62, or 6.6 per cent, to $107.24.
CHECKS IN THE MAIL: FedEx boosted its forecasts for the year as
it projected a record holiday season, and the shipping company posted better first-quarter results than analysts had expected. The stock rose $10.50, or 6.5 per cent, to $173.15.
QUEASY FEELING: Health care and household goods companies, which made the biggest gains on Tuesday, lagged the market. Biotech drug companies traded lower as Heather Bresch, the CEO of drugmaker Mylan, addresses Congress about the rising price of Mylan's emergency allergy shot EpiPen.
In prepared testimony, Bresch defended the company's tactics and said Mylan balanced the price of EpiPen against access for patients. Mylan edged up 26 cents to $41.52 Wednesday, but it's down 14 per cent since Aug. 19. The price of a two-pack of EpiPens has jumped more than 500 per cent over the last decade to more than $600, and Mylan is getting ready to start selling a version that costs about half as much.
Drug companies, especially ones that make costly biotech products, have been hammered over the last year by repeated controversies over drug prices. Amgen lost 98 cents to $172.40 while Alexion Pharmaceuticals gave up $2.89, or 2.2 per cent, to $128.84.
Drugstore operators Walgreens and CVS also slipped, which hurt consumer goods companies.
FLAT TIRE: CarMax lost $1.40, or 2.5 per cent, to $54.36 after the used car dealership reported weaker than expected sales.
BUYBACKS: Microsoft said it will buy back $40 billion in stock and also raised its quarterly dividend. The technology giant's stock rose 59 cents, or 1 per cent, to $57.40. Retailer Target said it plans to buy back $5 billion in company stock, and its shares gained 49 cents to $69.11.
BONDS, CURRENCIES: Bond prices fell. The yield on the 10-year Treasury note rose to 1.70 per cent from 1.69 per cent. The euro dipped to $1.1151 from $1.1157.
OVERSEAS: Germany's DAX rose 0.5 per cent and the FTSE 100 of Britain added 0.2 per cent. France's CAC 40 climbed 0.6 per cent. Tokyo's Nikkei 225 reversed an early loss and closed 1.9 per cent higher. The Hang Seng of Hong Kong gained 0.6 per cent and South Korea's Kospi rose 0.5 per cent.
- Editor:Albert | Source: The Associated Press
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