By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks moved higher on Wednesday,
boosted by better-than-expected economic growth data from China, an
upbeat industrial production numbers and positive corporate
earnings.
Federal Reserve Chairwoman Janet Yellen in a speech and a
Q&A session reiterated that the decision on interest rates
would be based on employment and inflation. The Fed's summary of
economic conditions, known as the Beige Book, said the U.S. economy
picked up in most of the country as the weather improved.
Estimate-beating earnings from Yahoo Inc. (YHOO) boosted tech
stocks.
The S&P 500 (SPX) rose 15 points, or 0.8%, to 1,857.32. The
Dow Jones Industrial Average (DJI) jumped 134 points, or 0.8%, to
16,390.84.
The Nasdaq Composite (RIXF) added 38 points, or 1%, to
4,074.88.
Follow MarketWatch's live blog of Wednesday's stock-market
action.
Yellen said that the forecast of the Federal Reserve and many
economists of a return to full employment and stable prices by the
end of 2016 is "quite plausible." Read also: Live blog and video of
Yellen's speech and Q&A
In economic news, data released by the Federal Reserve on
Wednesday show industrial production grew more than forecast in
March, thanks to mining and utility output.
Data on housing wasn't as upbeat. The U.S. Commerce Department's
report on housing starts in March came in below expectations even
though construction on new U.S. homes in March hit its fastest pace
in three months.
Kim Caughey Forrest, senior equity analyst at Fort Pitt Capital,
said markets reacted to a better-than-expected headline number on
the industrial production report, but warned the numbers are still
not great.
"It is still a flat economy and improving slowly. Housing starts
data were weak and at this point, still difficult to say if it's
weather related or that we hit a soft patch in the housing market",
Forrest said.
In earnings news, Yahoo Inc. (YHOO) jumped 6%, after quarterly
earnings released late Tuesday beat estimates. The Internet
company's first-quarter adjusted earnings were 38 cents a
share.
Bank of America Corp. (BAC) reported a first-quarter loss of 5
cents a share, sending shares 2.5% lower. The bank recorded $6
billion in litigation expenses during the period. Read also: Live
Blog: Bank of America Q1 earnings call.
Post Holdings Inc. (POST) shares rallied 5.8% following a report
in The Wall Street Journal that it has beat out several other
competitors, including Tyson Foods Inc. (TSN), to position itself
to buy Michael Foods Group for about $2.5 billion.
Interactive Brokers Group Inc. (IBKR) shares jumped 9% after the
firm said its profit surged, due largely to increased trading
activity in its electronic brokerage unit.
St. Jude Medical Inc. (STJ) shares dropped 2.3% after the
company said it earned an adjusted 96 cents a share in the first
quarter, almost in line with FactSet estimates of 95 cents.
After the closing bell, Google Inc. (GOOGL) is expected to
report earnings of $6.35 a share in the first quarter. Analysts at
Cantor Fitzgerald on Monday reiterated the stock's buy rating and
price target of $650. Shares in the company were up 1.8%.
IBM Corp. (IBM) is forecast to post earnings of $2.54 a share in
the first quarter.
In overseas markets, Asian and European stocks closed higher.
Gold and oil prices ticked up.
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