September 5, 2013

Auto, tech companies lead stocks higher

Bloomberg News

NEW YORK - U.S. stocks rose Wednesday, led by automakers and technology companies, as a Senate panel voted to authorize military action in Syria and the Federal Reserve said the economy maintained a "modest to moderate" pace of growth.

Ford Motor and General Motors rallied at least 3.5 percent after sales beat forecasts. Micron Technology and SanDisk jumped more than 3.3 percent after a fire forced rival SK Hynix to suspend operations at a factory in China. Apple gained 2.1 percent as Cantor Fitzgerald initiated coverage of the shares with a buy rating and amid speculation that the company may team up with China Mobile.

The Standard & Poor's 500 index rose 0.8 percent to 1,653.08. The Dow Jones industrial average added 96.91 points, or 0.7 percent, to 14,930.87. About 6.1 billion shares changed hands on U.S. exchanges.

The Fed said Wednesday the economy continued to grow from early July through late August, even as borrowing costs increased. The central bank's Beige Book survey of economic conditions in 12 Fed districts showed consumers spent more on travel and tourism, while manufacturing expanded "modestly."

Fed officials have been scrutinizing data to determine the timing and pace of any reduction in its $85 billion in monthly bond buying. The central bank, which has said it may pare stimulus if the U.S. economy improves in line with its forecasts, will hold its next policy meeting on Sept. 17-18.logy companies, as a Senate panel voted to authorize military action in Syria and the Federal Reserve said the economy maintained a "modest to moderate" pace of growth.

Ford Motor and General Motors rallied at least 3.5 percent after sales beat forecasts. Micron Technology and SanDisk jumped more than 3.3 percent after a fire forced rival SK Hynix to suspend operations at a factory in China. Apple gained 2.1 percent as Cantor Fitzgerald initiated coverage of the shares with a buy rating and amid speculation that the company may team up with China Mobile.

The Standard & Poor's 500 index rose 0.8 percent to 1,653.08. The Dow Jones industrial average added 96.91 points, or 0.7 percent, to 14,930.87. About 6.1 billion shares changed hands on U.S. exchanges, in line with the three-month average.

"Managers actually are fairly bullish on the environment," Arvin Soh, a New York-based portfolio manager with GAM, said by phone. His firm has more than $120 billion under management. "The view has been, 'yes we have some serious issues with Syria, but at the end of the day, growth is improving."'

The S&P 500 briefly pared its gain after the Senate Foreign Relations Committee voted to authorize President Barack Obama to conduct a limited U.S. military operation in Syria, the first step toward congressional endorsement of the effort. Republican House Speaker John Boehner on Tuesday said he supports Obama's call for military action. The full Senate is expected to consider the resolution on Sept. 9.

The Fed said Wednesday the economy continued to grow from early July through late August, even as borrowing costs increased. The central bank's Beige Book survey of economic conditions in 12 Fed districts showed consumers spent more on travel and tourism, while manufacturing expanded "modestly."

Fed officials have been scrutinizing data to determine the timing and pace of any reduction in its $85 billion in monthly bond buying. The central bank, which has said it may pare stimulus if the U.S. economy improves in line with its forecasts, will hold its next policy meeting on Sept. 17-18.

 

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