Stocks Advance After Fed Pledges More Stimulus
The Dow and the S&P advanced for the previous five days as optimism increased that a deal can be struck. The S&P is trading at its highest in five weeks and has now erased all of its post-election losses. Stocks fell immediately after the vote Nov. 6 on concern that a divided government would struggle to resolve the budget issue.
Chemicals giant DuPont advanced 61 cents, or 1.4 percent, to $44.30 after the company unveiled plans to buy back up to $1 billion of its shares next year and said that profit for this year will reach the high end of its forecasts.
The yield on the 10-year Treasury note rose 5 basis points to 1.71 percent.
Other stocks making big moves:â¿¿Eli Lilly and Co. fell $1.60 to $49 after the Indianapolis drugmaker said it will conduct the additional, late-stage study of its possible Alzheimer's treatment solanezumab. The move delays a regulatory decision on a drug that flashed potential to help patients with mild cases of the disease. â¿¿Health insurer Aetna Inc. rose $1.43 to $45.91 after the company said late Tuesday that it expects sales and profit to grow next year. â¿¿Berkshire Hathaway's Class A shares jumped $3,169, or 2.4 percent, to $134,045 after the company paid $1.2 billion to repurchase 9,200 shares from the estate of a longtime shareholder. The company's board also approved paying higher prices for future buybacks. â¿¿Netflix rose $4.65, or 5.4 percent, to $90.73 after the Morgan Stanley raised its prices target on the stock to $105 from $80 and kept its "overweight" rating. The company's deal with Disney, announced Dec. 4, will be a boon to Netflix, according to the investment bank's analysts.
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