The Joplin Globe, Joplin, MO

Business

March 20, 2013

US stocks rise ahead of Federal Reserve meeting

NEW YORK — U.S. stocks rose strongly Wednesday ahead of a decision by the Federal Reserve about whether to push ahead with aggressive measures to boost the economy.

Concern eased about a possible financial crisis in Cyprus. The Mediterranean nation needs a bailout to avoid defaulting on its financial obligations.

The Dow Jones industrial average rose 76 points, or 0.5 percent, to 14,531 in the first 40 minutes of trading.

The Fed will issue a policy statement and economic forecasts after it wraps up a two-day meeting Wednesday afternoon. The economic recovery is broadening, but Chairman Ben Bernanke says he doesn’t want to endanger the momentum as the global economic climate remains uncertain.

Highlighting the choppy nature of the recovery, FedEx reported sharply lower quarterly earnings and says it will cut capacity to Asia with so many businesses tightening their belts and using ground transport. FedEx is seen as a bellwether for the broader economy because air shipments are tied closely to the pace of business activity.

FedEx sank $5.31, or 5 percent, to $101.15.

Adobe soared after reporting strong first-quarter earnings. The company, which makes Adobe Reader and Photoshop, said it was picking up more subscriptions to online versions of its software products. The stock rose $1.52, or 4 percent, to $42.27.

Cyprus was negotiating with international lenders for support for its ailing financial system. Without a bailout deal, Cyprus’ banks would collapse, devastating the country’s economy and potentially forcing it to exit the euro currency group. That could roil global financial markets.

Fear about Cyprus dominated trading Monday, when the Dow lost 62 points; and Tuesday, when indexes closed mixed. Attention had returned to Europe after several months’ respite, during which traders focused on the strengthening U.S. economy and drove stocks to multi-year highs.

Over the previous two years, concerns about a breakup of the euro currency often dominated trading of U.S. stocks. The jitters receded after central banks provided enough extra cash to help prop up Europe’s commercial banks.

In other trading, the Standard & Poor’s 500 index rose 9, or 0.6 percent, to 1,557. The Nasdaq composite index rose 20, or 0.6 percent, to 3,248.

Among the other stocks making big moves:

— General Mills rose $1.05, or 2 percent, to $47.47 after saying its fiscal third-quarter profit rose 2 percent. The food company is benefiting from recent acquisitions.

— Williams-Sonoma soared after the home goods retailer said its fourth-quarter net income jumped 9 percent and beat expectations. The stock rose $3.60, or 8 percent, to $48.81.

 

1
Text Only
Business
  • Business US stocks close higher for third day in a row

    Investors drove stock prices to their highest level in a week Wednesday,

    April 16, 2014 1 Photo

  • China’s growth slows to 7.4 percent in 1Q

    China’s economic growth slowed further in the latest quarter but appeared strong enough to satisfy Chinese leaders who are trying to put the country on a more sustainable path without politically dangerous job losses.

    April 16, 2014

  • A look at 3 minority business mentoring programs

    A look at minority business mentoring programs, called accelerators, in three metropolitan areas.

    April 16, 2014

  • Why high oil prices are actually good for airlines

    Airline executives frequently complain about fuel costs. But the truth is higher prices actually have been good for business.

    April 16, 2014

  • Business US stocks open higher; Yahoo soars in early trade

    U.S. stocks moved higher in early trading on Wednesday, extending their gains into a third day. Investors welcomed solid earnings from Yahoo as well as some encouraging news about China’s economy and U.S. factory production.

    April 16, 2014 1 Photo

  • Detroit strikes second deal with its other retirees

    The city of Detroit reached tentative agreements to preserve pensions for retired police office and firefighters but cut monthly payments for other former employees, key deals that could accelerate the largest public bankruptcy in U.S. history, officials said Tuesday.

    April 16, 2014

  • Missouri court expands legal rights for injured workers

    The Missouri Supreme Court has overturned 30 years of precedent with a ruling that gives greater legal protections to injured workers who are fired from their jobs.

    April 15, 2014

  • Immigration activists urge Obama to act boldly

    Latinos and immigration activists are warning of political peril for President Barack Obama and Democrats in the fall election unless the president acts boldly and soon to curb deportations and allow more immigrants to remain legally in the U.S.

    April 15, 2014

  • Farmers off to slow start planting corn crop

    Spring planting across the nation’s Corn Belt is sputtering because the soil remains too soggy or cold for effective seeding.

    April 15, 2014

  • Schreiber Foods schedules Carthage plant expansion

    Plans to expand a Schreiber Foods plant to eventually add 160 new jobs have been endorsed by a Carthage committee working with the company. Andrew Tobish, director of combinations for Schreiber, which is based in Green Bay, Wis., confirmed the project, which he said would be complete by late spring or early summer in 2015.

    April 15, 2014

Poll

The Supreme Court may take up a challenge to an Ohio law that bars false statements about political candidates during a campaign. Do you think false accusations made in the heat of an election should be punished as a crime?

A. Yes.
B. No.
     View Results
Facebook
Twitter Updates
Follow us on twitter
NDN Video
Disbanding Muslim Surveillance Draws Praise Hundreds Missing After South Korean Ferry Sinks Passengers Abuzz After Plane Hits Swarm of Bees Boston Bomb Scare Defendant Appears in Court Pistorius Trial: Adjourned Until May 5 Diaz Gets Physical for New Comedy Raw: Ferry Sinks Off South Korean Coast Town, Victims Remember Texas Blast Freeze Leaves Florida Panhandle With Dead Trees At Boston Marathon, a Chance to Finally Finish Are School Dress Codes Too Strict? Raw: Fatal Ferry Boat Accident Suspicious Bags Found Near Marathon Finish Line Boston Marks the 1st Anniversary of Bombing NYPD Ends Muslim Surveillance Program 8-year-old Boy Gets His Wish: Fly Like Iron Man Sex Offenders Arrested in Slayings of CA Women India's Transgenders Celebrate Historic Ruling Tributes Mark Boston Bombing Anniversary Raw: Kan. Shooting Suspect Faces Judge