US stocks have recorded solid gains as the Federal Reserve held steady on its policy of economic stimulus.
The Dow Jones Industrial Average gained 55.91 points (0.39 per cent) to 14,511.73 at Wednesday’s close.
The broad-based S&P 500 picked up 10.37 (0.67 per cent) to 1,558.71, while the tech-rich Nasdaq Composite Index increased 25.09 (0.78 per cent) to 3,254.19.
The Federal Reserve, as widely expected, kept its monetary easing policies in place as it trimmed its 2013 and 2014 growth forecasts for the US economy.
The policies have boosted shares and been seen as a major factor in the Dow’s recent record-setting performance.
Barclays predicted the Fed would continue its asset purchases at the current $US85 ($A82.32) billion-a-month pace until the end of 2013, “before beginning to slow purchases sometime in the first half of 2014”.
Federal Express fell 6.9 per cent after reporting earnings below expectations. The company also gave a tepid outlook for 2013, noting “accelerating customer preference for lower-yielding international services”.
American Realty Capital Properties, a real estate investment trust specialising in commercial properties, rose 5.2 per cent after announcing it proposed to buy Cole Credit Property Trust III for more than $9 billion, including assumption of debt.
Homebuilder Lennar Corp edged up 4.8 per cent after reporting solid quarterly earnings and pointing to strong trends in the housing market, such as higher home prices.
Williams-Sonoma leaped 10.3 per cent after announcing a 41 per cent dividend increase and a three-year $750 million stock repurchase program.
Anadarko Petroleum and its partners moved higher after announcing a significant petroleum discovery in the Gulf of Mexico. Anadarko rose 3.8 per cent, Cobalt International leaped 8.1 per cent, Marathon Oil added 1.9 per cent and ConocoPhillips climbed 1.9 per cent.
Valeant Pharmaceuticals gained 2.7 per cent after announcing a plan to acquire Obagi Medical Products, which surged 28.2 per cent.
Bond prices fell. The yield on the 10-year Treasury rose to 1.94 per cent from 1.91 per cent late on Tuesday, while the 30-year rose to 3.17 per cent from 3.13 per cent. Prices move inversely to yields.
