Business Today

Wall Street gains on Apple result, Fed's economic outlook

The Dow Jones industrial average gained 89.16 points, or 0.69 per cent, to 13,090.72. The Standard & Poor's 500 was up 18.72 points, or 1.36 per cent, to 1,390.69.

twitter-logo IANS   New York     Last Updated: April 26, 2012  | 10:18 IST

The US Stocks gained broadly on Wednesday thanks to strong Apple earning reports and the US Federal Reserve's positive economic outlook.

The Dow Jones industrial average gained 89.16 points, or 0.69 per cent, to 13,090.72. The Standard & Poor's 500 was up 18.72 points, or 1.36 per cent, to 1,390.69. The Nasdaq Composite Index rallied 68.03 points, or 2.30 per cent, to 3,029.63, Xinhua reported.

Apple, the largest company in the world by market share, late on Tuesday reported that its profit doubled in the quarter ending March 31 on the back of soaring sales of the iPhone, especially in China.

Apple achieved net income of $11.62 billion, or $12.30 per share, compared to $5.99 billion and $6.40 per share a year earlier.

Meanwhile, Federal Reserve improved its outlook of US economy after its two-day policy meeting on Wednesday.

The central bank estimated that the US economy will grow between 2.4 per cent and 2.9 per cent in 2012, 0.2 percentage up from a January forecast of 2.2 per cent to 2.7 per cent growth.

The Fed also expected the unemployment rate to drop between 7.8 per cent and 8 per cent by the end of this year. The current reading was 8.2 per cent.

The Fed kept the ongoing record low interest rates unchanged near 0. The central bank said it was prepared to take additional easing measures to stimulate the economy if necessary.

The sentiments of the equity market were boosted by Fed's statement, even though the economic data was slightly negative on Wednesday.

The Commerce Department said durable goods orders for March showed a surprise drop of 4.2 per cent from the previous month, way out of line with expectations of a 2 per cent gain.

As for other markets, crude prices edged up Wednesday despite the unexpected steep increase of US crude inventories last week, helped by sharp gains in equities and the Fed's brighter outlook of US economy.

Meanwhile, the US dollar trimmed losses but still traded lower against other major currencies Wednesday after the Fed's statement.

Youtube
  • Print

  • COMMENT
BT-Story-Page-B.gif
A    A   A
close