By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks moved higher on Wednesday,
as investors digested better-than-expected economic growth data
from China , an upbeat report on industrial production and focused
on Federal Reserve Chairwoman Janet Yellen's optimistic speech.
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 128 points, or 0.8%, to
16,390.84.
The Nasdaq Composite (RIXF) added 40 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 was not as upbeat. The U.S. Commerce
Department's a 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.
The Fed will also release its Beige Book survey of current
economic conditions at 2 p.m. Eastern.
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 warns that 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 6.6%, 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 the shares 2.1% lower. The bank recorded $6
billion in litigation expenses during the period. Read also: Live
Blog: Bank of America Q1 earnings call.
U.S. Bancorp (USB) shares fell 1.3% after the bank reported a
decline in first-quarter earnings due to weaker mortgage banking
revenue.
St. Jude Medical Inc. (STJ) shares dropped 3.1% 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.
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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