Dow Average Rallies to Highest Level Since May
(Bloomberg) U.S. stocks rose, sending the Dow Jones Industrial Average to the highest level since May, as the Federal Reserve signaled low rates through at least late 2014 and didn’t rule out bond purchases to bolster growth.
The Standard & Poor’s 500 Index rallied 0.9 percent to 1,326 at 4 p.m. New York time, according to preliminary closing data. Apple Inc. (AAPL) climbed 6.2 percent to an all-time high as profit more than doubled on surging iPhone demand.
“The Fed is saying that money will stay easy and the cost of money will stay low,” Madelynn Matlock, who helps oversee about $14.5 billion at Huntington Asset Advisors in Cincinnati, said in a telephone interview. “The ability for businesses to find the money they need to grow and for consumers to find the money they need to buy things is going to be easier. That makes the growth path a little simpler. On the earnings front, we’ve had fewer positive surprises. That doesn’t mean the overall earnings outlook is worse.”
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