Economy

Stocks Rise Ahead of Fed Statement

Stocks Rise Ahead of Fed Statement”

Wall Street's recent rally has been supported by strong third-quarter results from technology and consumer companies amid concerns over stretched valuations.

"Earnings drive the markets, and they continue to be really good", said JJ Kinahan, chief market strategist at TD Ameritrade in Chicago.

Of 326 companies in the S&P 500 that have reported results, 73 percent topped analyst expectations, compared with 72 percent over the past four quarters, according to Thomson Reuters data.

Shares of Japanese multinational Sony soared as much as 12.3 percent to a nine-year high after the electronics and entertainment firm forecast its best-ever annual profit.

USA futures pointed to a firmer open on Wall Street on Wednesday as investors eyed earnings from the likes of Facebook and Tesla and the latest policy announcement from the Federal Reserve.

The Federal Reserve kept rates unchanged on Wednesday and pointed to solid US economic growth and a strengthening labor market while downplaying the impact of recent hurricanes, a sign it is on track to lift borrowing costs again in December.

The Fed interest rate decision is at 1800 GMT, with no change expected.

The White House has said President Donald Trump will announce his Fed pick on Thursday.

NEW YORK, Nov 1 (Reuters) - World stock markets climbed to a fresh high on Wednesday, boosted by solid corporate earnings and a climb in energy-related stocks as oil prices hit their highest in more than two years. Estee Lauder rose almost 10 percent, US Steel 11 percent and Garmin 5.51 percent. The Dow Jones Industrial Average .dji rose 58.23 points, or 0.25 percent, to 23,435.47, the S&P 500 .spx gained 5.28 points, or 0.21 percent, to 2,580.54 and the Nasdaq Composite .ixic dropped 14.24 points, or 0.21 percent, to 6,713.43.

On the data front, the USA private sector added 235,000 jobs in October, according to a report from ADP and Moody's.

Data on Wednesday showed the US economy remained on solid footing ahead of Friday's payrolls report. Fed Governor Jerome Powell, who has supported Yellen's gradual approach to raising rates, is viewed as relatively stock-market friendly and the likely choice.

The upbeat data comes ahead of the more comprehensive October jobs report on Friday, which includes both public and private sector employment.

Seven of the 11 major S&P indexes were higher, led by gains in the energy sector after oil hit its highest since mid-2015.

Oil hit its highest since mid-2015 on data that showed OPEC significantly improved compliance with its pledged supply cuts and Russian Federation is also widely expected to keep to the deal.

Exxon (XOM.N) and Chevron (CVX.N) gained 0.50 percent.

Declining issues outnumbered advancers on the NYSE by 1,439 to 1,394. On the Nasdaq, 1,421 issues rose and 1,286 fell.



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