By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks turned modestly higher
after the Federal Reserve said it remained confident the economic
recovery would strengthen yet inflation would remain contained.
Fed officials said they expect to raise short-term interest
rates a bit faster in 2015 and 2016 than previously forecast, and
announced no changes to the strategy of tapering monthly bond
purchases by $10 billion.
The S&P 500 (SPX) added 6 points, or 0.3%, to 1,947.81. The
Dow Jones Industrial Average (DJI) rose 22 points, or 0.1% to
16,930.33. The Nasdaq Composite (RIXF) gained 5 points, or 0.1%, at
4,342.94.
Follow MarketWatch's live blog of today's stock-market
action.
The Federal Open Markets Committee wrapped up the second day of
its meeting and released a statement, which remained similar to the
previous one. Fed Chairwoman Janet Yellen, answering questions at a
press conference, said the Fed will look at a "wide range of
indicators" on the labor market before deciding to raise rates.
Speaking about the markets, Yellen said the Fed is watching for
complacency in the markets that would promote too much risky
behavior.
Follow the live blog of Janet Yellen's press conference
here.
Erik Davidson, deputy chief investment officer for Wells Fargo
Private Bank, said the Fed statement was as expected and therefore
sparked little reaction in the stock market. "The Fed is not
concerned with an uptick in inflation rate, because central banks
know how to fight inflation, but they do not know how to fight
deflation," he added.
* In corporate news, Amazon.com Inc. Chief Executive Jeff Bezos
unveiled the company's first smartphone at an event in Seattle.
Amazon shares rose 2.8%.BlackBerry Ltd. shares rose 1.9% after the
company announced a partnership with Amazon on Wednesday. that
would give the smartphone maker access to Amazon's Appstore. Shares
of FedEx Corp. rose 5.5% after the parcel-delivery company's
quarterly earnings and sales topped analysts' expectations.Adobe
Systems Inc. leapt 7.9% after the company late Tuesday reported
better-than-expected adjusted earnings.But La-Z-Boy Inc. shares
slid 8.7% as the furniture maker's fourth quarter same-store sales
fell 0.9%, compared with a 11.2% rise in the fourth quarter of last
year.ConAgra Foods Inc. shares declined 7.1% after the
packaged-food company said fiscal fourth-quarter earnings will miss
expectations, as volume in its consumer foods segment declined 7%
and its private brands unit posted weak profits.
* In overseas markets, Japanese stocks rose, outperforming other
benchmarks throughout the region. European stocks wavered ahead of
the Fed decision. Minutes from the Bank of England's meeting
earlier this month, released Wednesday, signaled policy makers are
moving closer to raising U.K. rates before year's end.
* Among commodities, gold for August delivery ticked up $1.3 to
$1,273.3 an ounce. Crude oil futures slipped 25 cents to
$106.11.
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