(By Salman - iStockAnalyst Writer) US stocks finished mostly higher on Wednesday after Federal Reserve left benchmark interest rate unchanged at near zero and said that it will keep them low for an extended period.
The Dow Jones Industrial Average rose 30.23 points or 0.31% to finish at 9,802.14. The S&P 500 advanced 1.09 points or 0.10% to end at 1,046.50. The Nasdaq Composite fell 1.80 points or 0.09% to 2,055.52.
The US Federal Reserve kept interest rates unchanged at historic lows near zero following its two-day policy meeting. "The Federal Reserve will continue to employ a wide range of tools to promote economic recovery and to preserve price stability," it said in a statement issued on Wednesday. The central bank also said that it is ready to keep interest rates near zero for "an extended period"
The Institute for Supply Management said Wednesday that its services sector index slipped to 50.6 in October from 50.9 in September. Economists expected the index to rise to 51.5.
According to the ADP employment report released Wednesday, private-sector firms in the U.S. cut 203,000 jobs in October.
Shares of Merck & Co. Inc. (NYSE:
MRK) soared $1.95 or 6.36% to $32.62 after it said that earnings for the combined company created after the acquisition of Schering-Plough will increase at a "high single-digit" rate each year through 2013.
Software giant Microsoft Corp. (NASDAQ:
MSFT) gained 55 cents or 2% to $28.08.
McDonald's Corp. (NYSE:
MCD) rose $1.02 or 1.72% to $60.26.
Shares of Walt Disney (NYSE:
DIS), the largest US theme park operator, climbed 45 cents or 1.63% to close at $28.07.
Early on Wednesday, home builder Pulte Homes Inc. (NYSE:
PHM) reported a narrower third-quarter loss of $361.4 million, or $1.15 a share, compared to a loss of $280.4 million, or $1.11 a share, in the year-ago quarter. Consolidated revenue declined to $1.09 billion from $1.56 billion. Pulte Home shares rallied 32 cents or 3.47% to $9.55.
Comcast Corp. (NASDAQ:
CMCSA) slumped 45 cents or 3.10% to $14.06 after it said Wednesday that its third-quarter net income climbed to $944 million, or 33 cents a share, from $771 million, or 26 cents a share, in the prior year period. Quarterly revenue rose to $8.8 billion from $8.55 billion.
Transocean Ltd. (NYSE:
RIG) fell $1.50 or 1.75% to $84.41 after it said that third-quarter net income dropped to $710 million, or $2.19 a share, from $1.06 billion, or $3.30 a share, in the comparable period last year. On an adjusted basis, Transocean earned $2.65 per share. Revenue decreased to $2.82 billion from $2.88 billion.
Media conglomerate Time Warner (NYSE:
TWX) said that its third-quarter net income plunged 38% to $661 million, or 55 cents a share, with revenue slipping 6% to $7.14 billion on declines from AOL, publishing and filmed entertainment segments. Shares finished at $30.10, down 6 cents or 0.20%.
Late on Tuesday, Kraft Foods (NYSE:
KFT), the nation's largest food manufacturer, reported that third quarter net income jumped to $824 million, or 56 cents a share. In the year-ago quarter, Kraft earned 34 cents a share. Revenue slipped 5.7% to $9.8 billion. Shares of Kraft Foods plunged 95 cents or 3.43% to $26.60.
European stocks settled higher. The UK FTSE gained 70.68 points or 1.40% to 5,107.89. The German DAX and French CAC increased 1.70% and 2.40% respectively.
Asian stocks finished up. The Nikkei 225 rose 41.36 points or 0.42% to 9,844.31. The Hang Seng index of Hong Kong jumped 380.13 points or 1.76% to 21,240.06.
NYMEX crude oil for December delivery climbed 77 cents or 1% to settle at $80.37 a barrel.
Disclosure: Author doesn't own any of the stocks discussed here.
