By Kate Gibson
U.S. stocks rose Wednesday, with the Dow industrials extending
their longest winning run since December, amid ongoing cheer over
the Federal Reserve's decision to hold rates steady, which should
keep banks' borrowing costs at record lows for much of the
year.
"This is a continuation from the Fed," Jeffrey Friedman, senior
market strategist at Lind-Waldock, said of investor enthusiasm in
the wake of the central bank's statement Tuesday.
"The recovery is trying to take hold, inflation is not a threat,
so the Fed has more time," he added.
The Dow Jones Industrial Average (DJI) added 44.522 points, or
0.4%, to 10,730, with 21 of its 30 components moving higher.
The blue chips on Tuesday finished higher for a sixth straight
session, its longest stretch of gains since Dec. 28, 2009, and the
index's highest close since Jan. 19.
Trading at its highest level since October 2008, the S&P 500
Index (SPX) rose 6.48 points, or 0.6%, to 1,165.94. Financial
shares paced sector gains among the index's 10 industry groups,
with Lincoln National Corp. (LNC) leading the pack after its
upgrade by Bank of America Merrill Lynch. .
Advancers beat decliners nearly 3 to 1 on the New York Stock
Exchange, where composite volume stood at 2.5 billion shares in
early afternoon trade.
Hartford Financial Services Group (HIG) was among those
advancing after its late-Tuesday announcement that it would repay
$3.4 billion in government relief funds. .
The Nasdaq Composite Index (RIXF) climbed 14.34 points, or 0.6%,
to 2,392.38.
The dollar rose against the Japanese yen and declined a bit
against the euro. .
Crude-oil futures remained above $82 a barrel, while gold
futures edged higher.
An early report on prices at the wholesale level offered more
credence to thinking that the Federal Reserve should not have to
hike rates anytime soon to curb inflation.
The Labor Department's Producer Price Index declined 0.6% in
February, its largest drop in seven months. Taking out food and
energy costs, the index gained 0.1%. .
On Tuesday, stocks rose after the Fed's announcement that it
would keep its key rate for overnight loans between banks at
between zero and 0.25%. .
"Each FOMC meeting that keeps this language intact gives
investors 12 weeks of stability," said Marc Pado, U.S. market
strategist at Cantor Fitzgerald.
On Capitol Hill, Federal Reserve Chairman Ben Bernanke testified
Wednesday about efforts to reform banking regulation, telling
Congress the Fed's participation in the oversight of banks improves
its ability to carry out its monetary goals.
Shares of Blockbuster Inc. (BBI) fell 32% after the video-rent
chain said it might have to file for bankruptcy protection as it
struggles with debt after reporting a fourth-quarter loss of nearly
$435 million. .