Dow, S& P Set Highs After Fed Releases Minutes
Wednesday, October 10, 2007
NEW YORK, Oct. 9 -- Wall Street advanced sharply Tuesday as investors interpreted minutes from the Federal Reserve's last meeting as indicating that the central bank is ready to keep cutting interest rates to boost the economy. The Dow Jones industrial average and Standard & Poor's 500-stock index set highs.
The Dow rose 120.80, or 0.86 percent, to 14,164.53, eclipsing its previous record close of 14,087.55 Oct. 1. The Dow set a trading high as well, rising to 14,166.97.
The S&P 500 rose 12.57, or 0.81 percent, to 1565.15, surpassing the previous record close of 1557.59 reached Friday. It also hit a new trading high of 1565.26.
The Nasdaq composite index rose 16.54, or 0.59 percent, to 2803.91. This is the first time the technology-heavy index closed above 2800 since January 2001.
The major indicators were little changed before the minutes came out, but then rose sharply. Investors were hoping the Fed would lean toward future rate cuts; central bankers will meet again Oct. 30-31.
Federal Reserve Bank of St. Louis President William Poole said in a speech Tuesday that he thinks the financial markets are "still fragile" from weakening credit conditions but that they appear to be stabilizing. San Francisco Federal Reserve Bank President Janet Yellen said in a speech that the central bank must focus on "how financial market developments are likely to affect employment, output and inflation."
Alcoa gained $1.42, to $39.72, during the regular session. The third-quarter earnings season kicked off after the closing bell Tuesday when Alcoa reported results.
Yum Brands rose $1.82, to $38.11, after the company reported stronger-than-expected third-quarter profit.
Molson Coors gained $5.32, to $56.15, after it said it plans to combine its U.S. brewing operations with SABMiller in an effort to compete against industry leader Anheuser-Busch.
General Electric, the parent of NBC Universal, rose 49 cents, to $42.02, after NBC Universal said it was buying cable television network Oxygen Media for about $925 million.
Google rose $5.57, to $615.18, after closing above $600 for the first time Monday.