This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Markets Reach New Highs on Fed Support

NEW YORK ( TheStreet) -- The S&P 500 set yet another new record high Wednesday after the Federal Reserve indicated it will maintain its asset buying program for the foreseeable future.

The S&P 500 added 1.2% to 1,587.73, shattering its intraday record of 1,576.09 set in October 2007. Technology and financial sectors spearheaded the gains.

In Washington, President Obama unveiled on Wednesday his $3.77 trillion budget for 2014, which he said would reduce deficits and strengthen the economy.

The president's newly revealed 10-year budget blueprint included about $46.5 trillion in spending and $800 billion in new taxes.

IBM (IBM - Get Report) rose 1.3% to $212 after the computer services giant was upgraded to "buy" from "neutral" by UBS which said the company is well positioned to be a winner in "IT as-a-service" given its strength in private cloud services.

Yahoo! (YHOO - Get Report) and Apple (AAPL) have been discussing how more of Yahoo!'s services can play a prominent role on Apple's iPhone and iPad devices, people briefed on the matter told The Wall Street Journal. Yahoo gained 1.6% to $24.20.

The Dow Jones Industrial Average move higher by 0.9% to 14,802.24 while the

Nasdaq was up 1.8% to 3,297.25.

"First quarter earnings will test the resiliency of the stock market that reached an all-time high at the end of March. The big question is: will profit margins continue to rise," Mark Kravietz, managing director and partner of HighTower's Melville, New York-based MK Wealth Management said in an email. "There is a possibility that technology and healthcare can have earnings surprises on the upside."

The March Federal Open Market Committee meeting minutes were released at 9 a.m. EDT instead of 2 p.m. after they were reportedly unintentionally released to some people.

The minutes showed that "all but a few" policymakers argued it would be appropriate for the Committee to continue its $85 billion a month bond-buying program at least through mid-year as the FOMC still holds to the position that the benefits of keeping the balance sheet as broad as possible outweighs the costs.

Family Dollar (FDO) was adding 1.1% to $60.44 after the Matthews, North Carolina-based discount retailer lowered its current-year earnings forecast to up to $3.93 a share from the prior estimate of as much as $4.20 a share, as customers continue to face financial pressures and tighten their spending.

First Solar (FSLR - Get Report) was tumbling 7.7% to $36.32 after the solar panel maker surged Tuesday on better-than-expected 2013 earnings and revenue guidance.

International markets were broadly higher as China's imports grew 14.1% in March, much more than the 5.2% growth expected by economists and against a drop of 15.2% in February, calming worries about Chinese demand. In Japan, excitement over aggressive easing measures persisted. A successful Italian bond auction was also bolstering investor confidence.

The FTSE 100 in the U.K. closed up 1.17% and the DAX in Germany surged 2.27%. The Nikkei 225 in Japan finished up 0.73% Wednesday, while the Hong Kong Hang Seng index closed up 0.75%.

The benchmark 10-year Treasury was falling 14/32, boosting the yield to 1.805%. The dollar was up 0.15% to $82.52 according to the U.S. dollar index.

May crude oil futures finished up 44 cents to settle at $94.64 a barrel on the New York Mercantile Exchange while gold for June delivery was plunged $27.90 to $1,558.80 an ounce.

Written by Andrea Tse and Joe Deaux in New York

>To contact the writer of this article, click here: Andrea Tse.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
FDO $0.00 0.00%
FSLR $52.37 0.79%
IBM $145.49 0.29%
YHOO $37.03 0.24%
AAPL $93.09 -0.16%


Chart of I:DJI
DOW 17,653.80 -6.91 -0.04%
S&P 500 2,046.74 -3.89 -0.19%
NASDAQ 4,701.8720 -15.2220 -0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs