NEW YORK CITY: US stocks moved higher in early trade on Wednesday morning as markets looked ahead to the latest economic update from the US Federal Reserve.
About 40 minutes into trade, the Dow Jones Industrial Average rose 43.39 (0.29 percent) at 14,877.35.
The broad-based S&P 500 added 7.71 (0.47 percent) to 1,647.48 while the tech-rich Nasdaq Composite Index increased 22.96 (0.64 percent) at 3,635.58.
Wednesday's gains came as markets awaited an early afternoon release of the Fed's "Beige Book", which gives a read of US regional economic conditions and could provide clues on whether the Fed is likely to taper its aggressive bond-buying stimulus program.
Markets are also eyeing the political debate surrounding a possible US military strike on Syria.
President Obama said in Sweden Wednesday that "in the face of such barbarism," the global community needed to act against Syria.
US investors have reacted nervously to a Syria military strike, as the timing for the expected action continues to be pushed back.
Meanwhile, the US trade deficit in July widened to a greater-than-expected $39.1 billion, up from $34.5 billion in June.
The bigger trade gap will factor negatively in GDP models in the third quarter, said Briefing.com analyst Patrick O'Hare.
Technology giant Apple gained 1.9 percent after it set September 10 for an event that is expected to be the unveiling of its new iPhone line, which could include a range of colors and a low-priced version.
According to reports Apple also plans a media event in China on September 11.
LinkedIn shed 2.6 percent after announcing it planned a public offering of about $1 billion of shares. The funds will go to general corporate purposes and international expansion.
Discount retailer Dollar General gained 4.5 percent after earnings bested expectations by three cents per share at 77 cents. Same-store sales growth reached 5.1 percent in the quarter.
Vehicle manufacturer Navistar International lost 4.0 percent after reporting a quarterly loss of $247 million, citing weak industry conditions, among other factors. The company is cutting 500 jobs.
Ciena Corp., which specializes in communications networking equipment, jumped 10.3 percent after earnings exceeded expectations by seven cents at 23 cents per share. The company also provided a revenue forecast range that was higher than many estimates.
The yield on the 10-year Treasury edged to 2.86 percent from 2.85 percent Monday, while the 30-year held steady at 3.78 percent. Prices and yields move inversely.
Comments
Comments are closed.