Wall Street stocks have marched higher, greeting Federal Reserve meeting minutes that suggest a likely interest rate increase in December based on greater confidence in the economy.
Stocks were in the green all day, lifted early by a Goldman Sachs report that said Apple was primed to score huge profits from monetising its iPhone with video-streaming and other services. Apple jumped 3.2 per cent.
US stocks added to their gains after minutes from the Fed’s October 27-28 monetary policy meeting showed most officials expect a rate rise in December and have moved past worries about slowing global growth that had prevented a lift in September.
“The Fed continues to signal it will raise rates in December and the market sees this as a vote of confidence in the economy after the turbulence at the end of the summer,” said Gregori Volokhine, president of Meeschaert Capital Markets.
The Dow Jones Industrial Average rose 247.66 points (1.42 per cent) to 17,737.16.
The broad-based S&P 500 jumped 33.14 (1.62 per cent) to 2,083.58, while the tech-rich Nasdaq Composite Index climbed 89.19 (1.79 per cent) to 5,075.20.
Shares of large banks gained on expectations of increased profits from higher interest rates. JPMorgan Chase rose 2.0 per cent, Citigroup 2.8 per cent and Bank of America 2.4 per cent.
Pharmaceuticals were another standout sector, with Allergan and Biogen both gaining 4.5 per cent and Gilead Sciences up 3.4 per cent.
Chipmaker Qualcomm slumped 9.4 per cent after disclosing that it faces allegations from the Korean Fair Trade Commission that its licensing practices violate Korean competition law, triggering monetary penalties. Qualcomm said it intends to “vigorously” defend itself against the charges.
Big-box retailer Target dropped 4.3 per cent despite raising its full-year earnings forecast to $US4.65-$US4.75 per share, up from the prior $US4.60-$US4.75. Sterne Agee said the results were solid but that investors had hoped for better.
Rail company Norfolk Southern shot up 6.4 per cent after confirming that it received an unsolicited acquisition bid from Canadian Pacific. Norfolk Southern said it would review the offer. Canadian Pacific rose 5.8 per cent.
