Wall Street advanced on Wednesday, after stocks dropped yesterday for the first time in three days, with Tiffany & Co. gaining as investors were optimistic that the economy is solid enough to withstand additional reductions in Federal Reserve bond purchases.
Tiffany added 8.4% to propel retailer’s stocks as profits for the first quarter surpassed outlook. Netflix Inc surged 2.3% after announcing plans to grow its internet video business in Europe. Benchmark gauges pared gains, with the Russell 2000 Index of smaller firms retreating from an earlier 0.9% rally, Bloomberg reported.
The Standard & Poor’s 500 Index increased 0.5% to 1,881.17 as of 12:17 pm in New York. The equity benchmark needs to rise only 0.9% to hit a record high reached on May 13. The Dow Jones Industrial Average rose 116.59 or 0.7% to 16, 490.9. The volume of stocks traded in the S&P 500 firms was 22% under the average for the past 30 days as of this particular time of the day.
“The equity markets are moving higher today based off of the expectation of stronger economic growth. “Economic growth as well as earnings will begin to accelerate in the warmer months which will increase investors’ risk appetites,” said Chad Morganlander of Stifel Nicolaus & Co.
The Federal Reserve is expected to make public minutes of its meeting for April 29-30 in Washington today. In April, policy makers said there are signs of recovery of in the economy and the job market is picking up. The US central bank reduced its bond purchases to $45 billion in April, its $10 billion cut for the fourth straight month, and said further gradual tapering was possible.
According to ABC, Tiffany said its earnings surged 50% in the first three months of 2014 as global sales hiked and the firm raised its prices.
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