By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
S&P 500 breaks through 50-day moving average
The Dow Jones Industrial Average advanced for a fifth
consecutive session Thursday--its longest winning streak this
year.
Gains in the broader stock market came after minutes from the
Federal Reserve's latest policy meeting, released at 2 p.m.
Eastern, offered few surprises, showing that Fed officials were
largely hesitant to hike rates for the first time in nearly a
decade due to worries about global risk.
"There was not anything surprising in the minutes, as we already
knew why they decided to hold off the interest-rate hikes, so
markets saw no obstacles to climb," said Quincy Krosby, market
strategist at Prudential Financial.
The late-day rally for stocks was preceded by nervous trading as
investors awaited details on the thinking behind the Fed's decision
to leave rates unchanged in September.
Read: Fed minutes show worries about overseas led to caution at
rate meeting
(http://www.marketwatch.com/story/fed-minutes-show-worries-about-overseas-led-to-caution-at-rate-meeting-2015-10-08)
(http://w.graphiq.com/w/cJGF9QTZUep)
"There is a relief that the Fed acknowledged China, but also
said its impact will be transitory," said Ryan Larson, head of
equity trading, U.S. RBC Global Asset Management.
The Dow Jones Industrial Average gained 138.46 points, or 0.8%,
to 17,050.75, closing above 17,000 for the first time since August.
Caterpillar Inc. (CAT) lead gainers and rose 2.3%.
The S&P 500 index added 17.60 points, or 0.9%, to 2,013.43,
closing above its 50-day moving average. The Nasdaq Composite ended
the day up 19.64 points, or 0.4%, at 4,810.79, overcoming a
slumping biotech sector that had weighed it down for most of the
session.
Larson noted that the S&P 500 surpassing the 2,000 level and
trading above its 50-day moving average has improved investors'
optimism.
Some market participants attributed gains in the stocks after
the minutes were released to a lack of surprises to deter
investors.
Need to know: Why this stock-market rebound isn't just a 'flash
in the pan'
(http://www.marketwatch.com/story/why-this-stock-market-rebound-isnt-just-a-flash-in-the-pan-2015-10-08)
Fed minutes: A violent pullback in the stock market and concerns
about China were critical in the Federal Reserve's decision to keep
interest rates near zero, the newly released minutes show. "Many
[officials] acknowledged that recent global economic and financial
developments may have increased the downside risks to economic
activity somewhat," the minutes from the Federal Open Market
Committee said.
In economic news, the jobless claims reported showed the number
of people who applied for U.S. unemployment benefits
(http://www.marketwatch.com/story/jobless-claims-fall-to-263000-lowest-since-july-2015-10-08)
fell by 13,000 to 263,000 in the week ended Oct. 3, marking the
lowest level since mid-July.
Stocks to watch:Alcoa Inc.(AA)unofficially kicked off the start
of the earnings season reporting results after the market close on
Thursday. Alcoa shares fell 5% in after-hours trade as earnings
missed Wall Street expectations.
Shares of Encana Corp. (ECA) rose 6.6% after Canada Pension Plan
Investment Board and The Broe Group said they have agreed to buy
oil and gas assets from the company for a value of about $900
million
(http://www.marketwatch.com/story/cppib-and-broe-group-to-buy-encana-oil-gas-assets-for-900-million-2015-10-08).
Dell Inc. is in talks to combine with EMC Corp.(EMC), according
to people familiar with the matter, reported The Wall Street
Journal late Wednesday
(http://www.marketwatch.com/story/dell-discussing-merger-with-emc-sources-say-2015-10-07).
EMC shares rose 4.7%.
Netflix Inc.(NFLX) shares jumped 6% after the company raised the
price of its most popular streaming plan in the U.S. by $1 for new
customers as it ramps up investment in original shows and
movies.
Other markets: The Shanghai Composite Index posted gains of
slightly less than 3%, as that market reopened after a five-session
holiday break. But the increase wasn't enough to satisfy investors.
The Hang Seng China Enterprises Index rallied 11.5%, while the
Chinese market was closed, and investors had expected bigger gains
from China, said Angus Nicholson, market analyst at IG.
Also read: China could become a big problem for stocks again
(http://www.marketwatch.com/story/china-could-become-a-big-problem-for-us-stocks-again-2015-10-07)
The Nikkei 225 index finished down nearly 1%, after weak
Japanese machinery orders prompted buying of the Japanese yen ,
which rose against the U.S. dollar
(http://www.marketwatch.com/story/us-dollar-lower-against-yen-as-nikkei-falls-2015-10-08-21031810).
European stocks closed mostly higher, with the FTSE 100 index
finishing with gains for a seventh straight day
(http://www.marketwatch.com/story/ftse-100-breaks-six-day-winning-streak-ahead-of-boe-meeting-2015-10-08).
The Bank of England left key interest rates unchanged at the
conclusion of its rate-setting meeting.
Oil prices
(http://www.marketwatch.com/story/oil-prices-rise-but-market-concerned-over-us-stockpiles-2015-10-08)
jumped 3.4% to settle at $49.43 a barrel. Gold prices settled 0.4%
lower at $1,144.30, but climbed to $1,150.20 an ounce after the
FOMC minutes.
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(END) Dow Jones Newswires
October 08, 2015 17:37 ET (21:37 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.