Wall St rises on Yellen's view

Publish date: Tue, 01 Apr 2014, 11:27 AM
NEW YORK: US stocks rose on Monday, with the S&P 500 ending both March and the first quarter of 2014 with moderate gains, after Federal Reserve Chair Janet Yellen relieved concerns about a rate hike coming earlier than expected.
This was the fifth straight quarterly rise for both the S&P 500 and the Nasdaq, though it was the smallest three-month advance for both since the fourth quarter of 2012. Both the Dow and the S&P 500 rose for a second straight month in March.
Gains were broad, with nine of the S&P 500's 10 sector indexes rising for the day. About 73 percent of stocks traded on both the New York Stock Exchange and the Nasdaq closed higher.
The S&P materials sector index was the best performer, jumping 2.1 per cent, while the S&P utility sector index advanced 1.3 per cent.
Technology and financial shares, which along with materials are tied to the pace of economic growth, also outperformed for the day. Micron Tech climbed eight per cent to US$23.66, ranking as the S&P 500's top percentage gainer. Oracle Corp rose 3.4 per cent to end at US$40.91.
In her first public speech since becoming Fed chair two months ago, Yellen said that the US central bank's "extraordinary" commitment to boosting the economy would be needed for some time to come.
Earlier this month, Yellen raised concerns by saying that the period between the end of the Fed's quantitative easing programme and the first rate increase from the central bank could be six months, a faster timeline than many had anticipated.
"What Yellen did today was to alleviate that confusion and provide more clarity. When there aren't concerns about the Fed tightening, the market can breathe easier," said Joseph Tanious, global market strategist at J.P. Morgan Asset Management in New York.
Equities also received a boost from end-of-quarter "window dressing," when money managers adjust positions to improve the look of their portfolios.
Biotech stocks stayed in focus following recent volatility when investors sharply took profits in the high-flying sector. The Nasdaq Biotechnology index jumped three per cent, following a seven per cent drop last week, in what was the index's fifth consecutive weekly decline.
Among some of the more active names, Vertex Pharmaceuticals climbed 4.3 per cent to end at US$70.72 and Biogen Idec added four per cent to close at US$305.87.
The Dow Jones industrial average shot up 134.60 points, or 0.82 per cent, to end at 16,457.66. The Standard & Poor's 500 Index gained 14.72 points, or 0.79 per cent, to close at 1,872.34. The Nasdaq Composite Index climbed 43.24 points, or 1.04 per cent, to finish at 4,198.99.
The S&P 500 rose 0.7 per cent in March and gained 1.3 per cent in the first quarter. The Dow rose 0.8 per cent for the month, but fell 0.7 per cent in the quarter.
The Nasdaq fell 2.5 per cent for March, but rose 0.5 per cent in the quarter.
The Institute for Supply Management-Chicago business barometer was at 55.9 in March, its lowest level since August, and down from 59.8 in February. Economists' median forecast in a Reuters poll was 59.0.
US-listed shares of Prana Biotechnology Ltd plunged 71.6 per cent to close at US$2.80 after the company said its experimental drug to treat Alzheimer's disease failed to meet the main goal of a mid-stage study in patients with a mild form of the condition.
Logistics company UTi Worldwide Inc reported a bigger-than-expected quarterly loss, hurt by weak demand for air freight as customers opted for cheaper modes of shipping. Shares slumped six per cent to close at US$10.59.
About 5.28 billion shares traded on all US platforms, according to BATS exchange data, below the 6.9 billion average so far this month, according to data from BATS Global Markets.-- Reuters
Discussions
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fortunebullz

We are in the midst of month long bull run, if Dow continue to hike higher on next Fed meeting, then we will enter what is known as early SUPER BULL cycle! Let's ride on!

2014-04-01 21:59

fortunebullz

Its too early for major correction, so please, you will be carried away with super optimistic in coming days! You heard it from Fortunebull!

2014-04-01 22:00

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