By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks edged higher after the
Federal Reserve announced no changes to its policy of tapering
monthly bond purchases by $10 billion. The Fed officials expect to
raise short-term interest rates a bit faster in 2015 and 2016 than
previously forecast, however.
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.
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action.
Kate Warne, investment strategist at Edward Jones, said she
doesn't expect a change in the Fed's policy, which includes a
steady reduction in its bond-buying program.
"Even the 2.1% inflation rate is still within the Fed's target
and they are not likely to act on it. The Fed would be more
concerned not to tighten too soon, they would need more evidence of
accelerating recovery in the labor market," she added.
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 chair Janet Yellen is to begin a press conference
at 2:30 Eastern.
* In corporate news, Amazon.com Inc. Chief Executive Jeff Bezos
is expected to unveil its first smartphone at an event in Seattle,
and speculation is that the device will feature 3-D capabilities.
Amazon shares rose 1.8%.BlackBerry Ltd. shares rose 3.4% 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 3.8% after the parcel delivery company's
quarterly earnings and sales topped analysts' expectations.Adobe
Systems Inc. leapt 9.6% after the company late Tuesday reported
better-than-expected adjusted earnings.But La-Z-Boy Inc. shares
slid 9% 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 5.8% 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 clung to thin
gains 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 down $1 to
$1,270.6 an ounce. Crude oil futures added 39 cents to $106.75.
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