Moscow. October 29. U.S. stock indexes on Wednesday rose to its highest level in two months on signs that the Federal reserve (fed) may raise rates in December, reports Bloomberg.
The fed as expected kept the key interest rate unchanged at the October meeting. While the Central Bank signaled a possible increase in rates “at the next meeting”, in December of the current year. The decision will depend on macroeconomic indicators of employment, inflation and expectations on them.
For the first time in a long time, the leadership of the fed directly started talking about raising rates, before they discussed the terms hold borrowing costs at zero.
Before the meeting, the fed futures market in the US estimated the chances of a tightening of monetary policy U.S. Central Bank in December, about 35%, after the publication of the communiqué, the rating jumped to 48%.
“Investors have the impression that the Federal reserve continues to consider the probability of a rate hike in December, said analyst BlackRock Russ Koesterich. – If statistics are on the same level, then such a scenario is quite possible.”
After the fed’s decision jumped the quotations of the FIS. In particular, Bank of America rose 5.4%.
The share value of Apple Inc. increased by 4.1%. The company increased its net profit in the third quarter by 31% amid high demand for iPhone in China.
The quotations of Twitter fell 1.5%, during the session, the decline reached 11%. The company has reduced the loss in the past quarter on quarter and exceeded market expectations for adjusted profits and revenue, but gave disappointing investors annual forecast.
Capitalization Of Akamai Technologies Inc. fell by 17% due to the fact that quarterly profit and revenue of the Internet company has not justified expectations of experts.
Northrop Grumman Corp. increased market value of 5.5%. She was the winner conducted by the U.S. Department of defense tender for the development impact of long-range bombers, which is estimated at $80 billion.
Shares of oil companies Chevron and Occidental Petroleum rose in price by more than 2.4% on the background of growth of quotations of WTI crude oil by 6.3%.
Securities course manufacturer of chocolates Hershey fell by 6.4% on weak full-year forecast of revenue.
The market value of AIG had jumped by 4.9%. Billionaire investor Carl Aikan urged the insurer to divide the business into three independent companies, one of which will deal with property insurance, other life, the third is the issuance of guarantees on mortgage bonds.
Stock quotes online pharmacy Walgreen Alliance Boot fell by 11%. The company has officially announced its intention to acquire rival Rite Aid for $17.2 billion
The Dow Jones Industrial Average on October 28 rose by 198,09 points (1.13 percent) and amounted to 17779,52 item.
Standard & Poor’s 500 increased on 24,46 points (1,18%) – to 2090,35 item.
The Nasdaq Composite was up 65,55 paragraph (1,30%) and amounted to 5095,69 item.