NEW YORK - Stocks rose another high for the year Wednesday after Federal Reserve Chairman Ben Bernanke said the Central Bank responsible for expect the economy to continue to recover the market strengthens jobs.
The Russell 2000 index of small stocks, hit a record. The standard & poor 500 index has now doubled its bottom with during the financial crisis.
The Fed said it expects the economy to grow up to 3.3% this year. It was under the previous forecast of the Fed in January, but the Fed also said that it was more optimistic about jobs. It now provides that the unemployment rate to fall as low as 8.4% at the end of the year. The unemployment rate is currently at a minimum of two years of 8.8%.
Bernanke comments came in his first press conference. He spoke after the Fed officials held a political meeting in two days. The Fed also announced that it would end its program of liaison-purchase of 600 billion as planned in June. The Fed has reiterated his promise to maintain the interest rate low for "an extended period."
The Dow Jones index increased 95.59 points, or 0.8%, to close at 12,690.96. The Dow Jones index was already in place before the onset of Bernanke and an another 50 points has increased after the talks President fed. The last time the Dow Jones index is this high was in May 2008.
The Standard & Poor s 500 increased 8.42, or 0.6%, to 1,355.66. It was its highest price since June 2008.
Index has now doubled its closing level on March 9, 2009, when he struck a minimum of 12 years in the financial crisis. It is 13 percent below the record highs of 1,565, which it reached in October 2007.
The Nasdaq composite index increased 22.34, or 0.8%, to 2,869.88.
The Russell 2000 index, a point of reference for small stocks, has exceeded its record high of 855.77 reached in July 2007. It is closed until 5.27, or 0.6%, to 858.31.
Rapid rebound of the economy from the recession caused the small stocks of make-up. S & P 500 index companies of record amounts of cash on their balance sheets leading to the widespread belief that small business are natural targets for acquisitions of companies.
"The fact is that, until we are in a soft patch sustained the economy, the small (companies) will continue to be more efficient," said Quincy Krosby, Prudential Financial market strategist.
Price of gold roses after the Fed said it would keep interest rates near zero to stimulate the economy. That led traders to buy, or as a bulwark against inflation and a weakening of the dollar, which may result from low interest rates. Gold for June delivery rose $13.60 to settle at $1,517.10 an ounce.
Bond prices have been relatively unchanged after the press conference of Bernanke. The yield on the note of 10 years of the Treasury Board is passed to 3.35% 3.32% late Tuesday.
Earnings results have been mixed. After the statement of earnings beat analyst expectations, Boeing Co. has increased by less than 1%. The manufacturer of the aircraft and contractor Defense also said that always expects to deliver its 787 aircraft long delayed in the third quarter.
DeVry Inc. increased 7%. The for-profit education company reported that its earnings increased by 18% as its revenues increased.
Broadcom Corp. fell 12 percent a day after the manufacturer of the chip issued an outlook for the second quarter income was below analyst estimates.
Specialty glass Corning Inc. has increased by more than 2% after the revenues of the company is sweeping across the strong sales of glass for flat screen televisions, computers and peripherals mobile.
Johnson & Johnson Rose less than 1% after health giant said it would buy medical device maker Inc. Synthes 21.3 billion in one of the most important transactions in the history of the company.
Investors were encouraged after the Commerce Department reported that businesses increased their orders for manufactured goods of long duration of 2.5% in March, an increase of larger than economists had predicted.
"The manufacturing sector remains the real light spot of the economy," said Peter Cardillo, Chief Economist of market based in New York Avalon Partners Inc. brokerage house.
Three stocks rose for all both fell to the New York Stock Exchange. Volume was 4.2 billion shares.
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