Wall Street Soars Ahead of Fed Minutes

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Wall Street Soars Ahead of Fed Minutes

US shares advanced after a sell off that lasted two days, as Alcoa Inc. added following earnings that surpassed projections and investors awaited release of minutes from the last meeting of the Federal Reserve.

Alcoa advanced 6% after starting earnings season with results that were better than estimates. American Airlines Group Inc. ascended 4.1% after hiking its margin estimates. Facebook Inc. rose 2.9% to lead gains among an index of technology stocks. Bob Evans Farms Inc. retreated 4.2% as after three-month revenue fell below estimates.

The Standard & Poor’s 500 Index advanced 0.3% to 1,969.21 as of 1:06 pm in New York after retreating 1.1% for the past two days. The Dow Jones Industrial Average added 43.71 points or 0.3% to 16,950.33. The Russell 2000 Index was flat after its deepest two-day fall since April. The volume of shares traded in the S&P 500 matched the average for the past 30 days at this time of the day.

John Manley of New York-based Wells Fargo Funds Management told Bloomberg in a phone interview that while shares might drop, markets won’t stay down.

“The fact that the market is still questioning all these things that are going on is a very healthy sign. I still think the Fed is going to be more concerned about making absolutely sure that the U.S. economic recovery is under way and staying under way,”added Manley.

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US shares lost for a second day yesterday in the wake of surging worries that markets have advanced too fast after blue-chip gauges closed last week at all-time peaks.

The Fed is expected to release on Wednesday minutes of its June 17-18 gathering, when policy makers cut monthly bond purchases to $35 billion. Fed officials are deliberating on the timing for the first hike in the key interest rate since 2006.

GigamonInc lost 31%, as MarketWatch reported.

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To contact the reporter of this story; Jonathan Millet at john@forexminute.com