US stocks rise on Fed’s improved outlookBy DPA, IANS
Wednesday, February 16, 2011
NEW YORK - Wall Street stocks climbed Wednesday as the Federal Reserve raised its economic forecast for the US this year.
The US central bank predicted growth of between 3.4 and 3.9 percent in 2011, up from November projections, but said the improved outlook was unlikely to drive down unemployment rates from their current level of 9 percent.
Improved figures for US home construction and better-than-expected earnings from computer firm Dell also buoyed investors.
The blue-chip Dow Jones Industrial Average was up 61.53 points, or 0.5 percent, to 12,288.17. The broader Standard and Poor’s 500 Index gained 8.31 points, or 0.63 percent, to 1,336.32. The technology-heavy Nasdaq Composite Index climbed 21.21 points, or 0.76 percent, to 2,825.56.
The US currency fell against the euro to 73.7 euro cents from 74.15 euro cents Tuesday. The dollar dropped against the Japanese currency to 83.65 yen from 83.77 yen the previous day.