Stocks Rally in Early Wednesday Trading
Stocks Rally in Early
Trading Wednesday Trading
Investors' expectations that the Federal Reserve will announce further action to stimulate the economy at their November meeting pushed stocks higher on Wednesday.
The Dow Jones industrial average shot up 121 points, or 1.1 percent, 90 minutes into the session. The S&P 500 had gained 12 points, 1 percent, and the Nasdaq gained 26 points, also 1 percent. Investors also reacted favorably to better-than-expected results from JPMorgan Chase, Intel, and CSX. Shares of Intel and JPMorgan, however, declined in early trading.
Insiders say the market has reacted favorably thanks to the September minutes released by the Fed on Tuesday, which increased expectations of further stimulus action from the central bank, which could come as soon as November, when the Fed is next scheduled to meet. Also bolstering the market on Wednesday was a report that China's trade surplus had narrowed last month. A report indicating that US import prices fell was mostly ignored.
The US dollar continued to grow weaker, as the anticipated action from the Fed is expected to undermine it. The weaker dollar drove prices higher for commodities such as gold, which hit a record high. The strength of commodities helped boost shares of industrial and materials companies. Caterpillar and Boeing each rose more than 1.5 percent. Tech companies also fared well, as IBM and United Technology each gained more than 1 percent.
Earlier in the day, third-quarter results for JPMorgan were released, showing the company earned $4.4 billion during the period as its loan losses continued to decline. Despite the strong results, the bank's shares fell 0.5 percent thanks to concerns over the effects on the company of the recent foreclosure document scandal.
The company has admitted to finding a number of cases in which signers of affidavits failed to properly review the documents before signing them, as the law requires, and that a number of affidavits were improperly notarized.
The strong results from JPMorgan could, however, portend good news for Citigroup, Bank of America, Wells Fargo, Morgan Stanley, and Goldman Sachs, all of which are scheduled to release earning reports next week.
Chip manufacturer Intel had reported quarterly gains in sales and profits on Tuesday, and railroad operator CSX posted better-than-expected results, as well. Shares of Apple stock, meanwhile, rose to $301.38 per share, surpassing the $300 mark for the first time in the company's history. The company's stock has increased about 40 percent so far this year, largely driven by the success of the company's iPad and iPhone products.
The US Bureau of Labor Statistics reported that US import prices decreased slightly in September, a report that seemed to have little effect on markets. The decline was mainly caused by a 3.1 percent drop in the price of fuel imports. Export prices, meanwhile, rose by .6 percent, after they had risen .8 percent in the previous month.
Investors' expectations that the Federal Reserve will announce further action to stimulate the economy at their November meeting pushed stocks higher on Wednesday.
The Dow Jones industrial average shot up 121 points, or 1.1 percent, 90 minutes into the session. The S&P 500 had gained 12 points, 1 percent, and the Nasdaq gained 26 points, also 1 percent. Investors also reacted favorably to better-than-expected results from JPMorgan Chase, Intel, and CSX. Shares of Intel and JPMorgan, however, declined in early trading.
Insiders say the market has reacted favorably thanks to the September minutes released by the Fed on Tuesday, which increased expectations of further stimulus action from the central bank, which could come as soon as November, when the Fed is next scheduled to meet. Also bolstering the market on Wednesday was a report that China's trade surplus had narrowed last month. A report indicating that US import prices fell was mostly ignored.
The US dollar continued to grow weaker, as the anticipated action from the Fed is expected to undermine it. The weaker dollar drove prices higher for commodities such as gold, which hit a record high. The strength of commodities helped boost shares of industrial and materials companies. Caterpillar and Boeing each rose more than 1.5 percent. Tech companies also fared well, as IBM and United Technology each gained more than 1 percent.
Earlier in the day, third-quarter results for JPMorgan were released, showing the company earned $4.4 billion during the period as its loan losses continued to decline. Despite the strong results, the bank's shares fell 0.5 percent thanks to concerns over the effects on the company of the recent foreclosure document scandal.
The company has admitted to finding a number of cases in which signers of affidavits failed to properly review the documents before signing them, as the law requires, and that a number of affidavits were improperly notarized.
The strong results from JPMorgan could, however, portend good news for Citigroup, Bank of America, Wells Fargo, Morgan Stanley, and Goldman Sachs, all of which are scheduled to release earning reports next week.
Chip manufacturer Intel had reported quarterly gains in sales and profits on Tuesday, and railroad operator CSX posted better-than-expected results, as well. Shares of Apple stock, meanwhile, rose to $301.38 per share, surpassing the $300 mark for the first time in the company's history. The company's stock has increased about 40 percent so far this year, largely driven by the success of the company's iPad and iPhone products.
The US Bureau of Labor Statistics reported that US import prices decreased slightly in September, a report that seemed to have little effect on markets. The decline was mainly caused by a 3.1 percent drop in the price of fuel imports. Export prices, meanwhile, rose by .6 percent, after they had risen .8 percent in the previous month.
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