By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks rallied Wednesday, gaining
the most in four weeks, after the Federal Reserve chief signaled no
hurry to raise rates.
The benchmark S&P 500 reached its 20th closing record of
2014 after four consecutive days of gains, rapidly picking up steam
as Fed Chairwoman Janet Yellen spoke during a press conference
following the Fed's policy statement. She was vague about when the
Federal Reserve could first hike rates, saying there could be
"considerable time" between when the bond taper ends and hikes
begin. And she said the Fed was not concerned about the stock
market's run to record highs.
The S&P 500 (SPX) added 14.99 points, or 0.8%, to 1,956.98,
the largest one-day percentage gain in four weeks. It also took out
its June 9 intraday record, hitting a new high of 1,957.81.
The Dow Jones Industrial Average (DJI) gained 98.13 points, or
0.6%, to 16,906.62. It had been about 17 points lower before the
Federal Reserve's policy statement was released at 2 p.m.
Eastern.
The Nasdaq Composite (RIXF) ended the day up 25.60 points, or
0.6% at 4,362.84.
Follow MarketWatch's live blog of today's stock-market
action.
The Federal Open Market Committee's policy statement was nearly
identical to the previous one issued in April. Only its description
of the economy was changed -- and in a way to make it more upbeat.
Stocks didn't move much after the statement. But they started to
rally during the press conference that followed.
Yellen, answering reporters' questions, said the Fed will look
at a "wide range of indicators" on the labor market before deciding
to raise rates. It was a contrast to her statement in the March
press conference, when she said the Fed might start raising rates
six months after the end of bond buys. Those comments triggered a
selloff in stocks.
Read a recap of the live blog of Janet Yellen's press conference
here.
"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," said Erik Davidson, deputy chief
investment officer for Wells Fargo Private Bank.
* In corporate news, Amazon.com Inc. Chief Executive Jeff Bezos
unveiled the company's first smartphone at an event in Seattle.
Amazon shares rose 2.7%.BlackBerry Ltd. shares rose 3% 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 6.2% after the parcel-delivery company's
quarterly earnings and sales topped analysts' expectations.Adobe
Systems Inc. leapt 8.2% after the company late Tuesday reported
better-than-expected adjusted earnings.But La-Z-Boy Inc. shares
slid 8.1% 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 7.3% 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 closed lower, but
U.K. stocks outperformed.
* Among commodities, gold for August delivery ended higher and
gained more after the Fed statement. Crude oil futures slipped 39
cents to settle at $105.97 a barrel.
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