IBJNews

Stocks open higher day after Federal Reserve move

Back to TopCommentsE-mailPrintBookmark and Share

Stocks opened higher Friday, on track to record one of their best weeks since June, after the Federal Reserve stepped in again to help the disappointing economic recovery.

Just before 11 a.m., the Dow Jones industrial average was up 66 points at 13,606. The Dow rocketed higher by 206 points on Thursday after the Fed announcement and closed at a four-year high.

The Fed pledged to spend $40 billion on mortgage bonds to drive down long-term interest rates and push investors into stocks. It also extended its guarantee of super-low interest rates by six months, into 2015.

The Dow has climbed 2.3 percent this week, its best performance since early June. The last two weeks for the Standard & Poor's 500 index have also been the best since June.

A summer rally has put the Dow within 600 points of its all-time high — 14,164, set on Oct. 9, 2007.

European and Asian stocks spiked Friday in their first trading after the Fed move. French stocks were up 2 percent and German stocks 1 percent. The Nikkei average in Japan climbed almost 2 percent.

In the United States, the S&P was up 12 points at 1,472, and the NASDAQ composite index was up 35 at 3,191.

UnitedHealth Group rose 59 cents, or 1.1 percent, to $54.48 after an announcement that it will be added to the Dow, replacing Kraft Foods. It is the first change in the makeup of the 30-stock average since June 2009.

In the broader market, energy stocks were the best performers and telecommunications companies the worst.

The price of oil rose above $100 for the first time since May before dipping back below. It was up $1.35 for the day at $99.65. Unrest in the Middle East this week has heightened concerns about world oil supply.

Alpha Natural Resources was the best performer in the S&P 500. It rose 63 cents, or 7.7 percent, to $8.86. Valero Energy, Chesapeake and Chevron were among the other winners among energy stocks.

Gold pushed higher for a second day, rising $3 an ounce to $1,775. Gold tends to rise after the Fed announcements like Thursday's, partly because investors fear inflation and partly because a weaker dollar makes gold more expensive.

As investors moved into stocks, they pulled money out of bonds, driving yields up. The yield on the benchmark 10-year U.S. Treasury note climbed 0.16 percentage pont to 1.88 percent, its highest since early May.

The dollar lost ground for a second day against world currencies. The euro climbed a penny and a half to $1.315.

The Commerce Department reported that retail sales increased in August by a seasonally adjusted 0.9 percent, mostly because of higher gasoline prices. Outside of gas and cars, sales rose only 0.1 percent, weaker than in July.

And the cost of fuel drove up consumer prices in August by the most in three years, according to the Labor Department. Without higher energy costs, inflation was static.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
thisissue1-092914.jpg 092914

Subscribe to IBJ
  1. Here are a few candidates for this new group, "ripped from the headlines." First up, that bizzaro State Senator Brent Waltz; secondly, the unethical Todd Huston, and his contractual arrangements scheme; Finally, but not least of all, the dishonorable Eric Turner. What sayeth you Greg Zoeller?

  2. Good day. I can't hide this great testimony that take place in my life I will love everyone to know it and be partaker that is why I always place it on answer, I am Mrs,Natalie Cuttaia by name, I live in Texas, United State Of America, I want to thank (Mr.Bruce Brandon) for his kindness upon my family life. I never knew that there is still nice lender like this on internet and earth here. Just some Months Back, I was in search for a loan of $100,000,00 as I was running out of money for feeding and rent. I was scammed $6,800 Dollars and I decided not to involve my self in such business again but a Friend of my introduced me to a loan firm due to my appearance and doings. And I told him that I am not interested of any loan deal anymore but he told me that there is still a nice lender who he will recommend me to, and I made a trial and I am most grateful lucky am I today, I was given a loan amount of $100,000.00usd, by this great Company (Bruce Brandon Loan Company) managed by (Mr.Bruce Brandon) If you are in need of a genuine or legit loan or financial assistance and you can be reliable and trusted of capable of paying back at the due time of the funds I will advice you to, contact him via: ( bruce.brandon071@gmail.com ) And you will be free from scams in the internet. All thanks to Mr.Bruce Brandon You are the one who remove me and my family out of poverty. The reason why i am doing this is that, i promise Mr.Bruce Brandon that if i truly got my loan, i will advertize his company and bring customers to his company. Contact him via ( bruce.brandon071@gmail.com )for the Loan you have been looking for..

  3. Hello, We are firm Organization formed to help people in needs of helps,such as financial help. So if you are going through financial difficulty or you are in any financial mess,and you need funds to start up your own business,or you need loan to settle your debt or pay off your bills,start a nice business, or you are finding it hard to obtain capital loan from local banks,contact us today via email mrsroseberrywilkinsfunds.usa@gmail.com So do not let these opportunity pass you by because Jesus is the same yesterday, today and forever more. Please these is for serious minded and God fearing People. Your Name: Loan Amount: Loan Duration: Valid Cell Phone Number: Thanks for your understanding to your contact as we Await Regards Management Email:mrsroseberrywilkinsfunds.usa@gmail.com

  4. The question is, where could they build a new stadium? It seems in the past year, all the prime spots have been spoken for with potential projects. Maybe in the industrial wasteland area a block past Lucas Oil? I think it needs to be close to the core, if a new stadium is built.

  5. Aldi is generally a great shopping experience. Still, I'm sure YOU wouldn't want to shop there, which I consider a positive.

ADVERTISEMENT