(By Salman - iStockAnalyst Writer)US stocks finished mostly higher after US Federal Reserve kept its benchmark interest rate near zero.
The Dow Jones Industrial Average slipped 23.05 points or 0.28% to finish at 8,299.86 The S&P 500 rose 5.86 points or 0.65% to end at 900.94. The Nasdaq Composite jumped 27.42 points or 1.55% to 1,792.34.
The Federal Reserve concluded its two-day meeting on Wednesday by announcing that its benchmark overnight interest rate will remain unchanged at near zero. The Federal Open Market Committee said in a statement that the “pace of economic contraction is slowing” and noted that financial markets have generally improved while consumer spending has shown signs of stabilizing. It added that the central bank would keep interest rates low for “an extended period" and that "inflation was likely to "remain subdued for some time."
A release by Department of Commerce showed that orders for durable goods unexpectedly rose 1.8% in May. Economists on average had projected a decline of 0.5%.
The Commerce Department said in a separate release that new home sales dropped 0.6% in May to a seasonally adjusted annual rate of 342,000, from a downwardly revised April rate of 344,000.Economists expected a reading of 360,000.
According to Mortgage Bankers Association, seasonally adjusted mortgage applications index, which includes both purchase and refinance loans, rose 6.6 percent to 548.2 in the week ended June 19.
Shares of plane maker Boeing Co. (NYSE:
BA) plunged $2.55 or 5.81% to $41.32. The company postponed the maiden flight of its 787 Dreamliner for the fifth time, citing the need to Reinforce Body Section. The 787 Dreamliner was planned for delivery in next year’s first quarter and has already been delayed two years.
American Express (NYSE:
AXP) fell 46 cents or 1.97% to $22.93.
Alcoa, the largest US aluminum maker jumped 21 cents or 2.10% to $10.21.
Shares of equipment maker Caterpillar Inc. Inc. (NYSE:
CAT) rose 40 cents or 1.21% to $33.40.
Chemical maker DuPont (NYSE:
DD) gained 43 cents or 1.76% to $24.83.
Late on Tuesday, Oracle Corp. (NASDAQ:
ORCL) announced that its fiscal fourth-quarter net income declined to $1.9 billion, or 38 cents a share, from $2 billion, or 39 cents a share in the year-ago period. Revenue slipped 5% to $6.9 billion. Shares of software giant rallied $1.39 or 7% to $21.26.
Darden Restaurants (NYSE:
DRI) on Tuesday reported that fiscal fourth quarter net income jumped to $123 million, or 87 cents a share, from $101.8 million, or 71 cents a share. Revenue climbed to $1.98 billion from $1.83.Darden lost $1.06 or 3.21% to end at $31.94.
Early on Wednesday, Monsanto Co. (NYSE:
MON) that its fiscal third-quarter net income slipped to $694 million, or $1.25 a share, from $811 million, or $1.45 a share, in the prior year period. Revenue fell to $3.16 billion from $3.54 billion last year. Shares of the company declined $3.14 or 3.96% to $76.16.
Rite Aid Corp. (NYSE:
RAD) said that its first-quarter loss narrowed to $98.5 million, or 11 cents a share, from $162.8 million, or 20 cents, a year earlier. Revenue dropped to $6.53 billion from $6.61 billion. Shares of Rite Aid Corp. slumped 4 cents or 3.17% to $1.22.
European stocks settled higher. The UK FTSE gained 49.96 points or 1.18% to 4,279.98. The German DAX and French CAC advanced 2.74% and 2.18% respectively.
Asian stocks finished up. The Nikkei 225 rose 40.71 points or 0.43% to end at 9,590.32. The Hang Seng index of Hong Kong jumped 353.78 points or 2.02% to 17,892.15.
NYMEX crude oil for July delivery climbed $1.74 or 2.6% to settle at $69.24 a barrel.
Disclosure: Author does not own any of the stocks discussed here.
