Stocks soared Wednesday on a Federal Reserve report that portrayed an improving economy with tame inflation.
The market was already trading higher on stronger than expected retail sales when the Fed’s Beige Book was released, showing that economic activity improved in May while wage pressures remained tame.
The news sent stocks to their best one-day gain of the year, and bond yields backed off their recent rise, but wholesale and retail consumer inflation data on Thursday and Friday will likely carry more weight with investors.
But Apple shares continued to be hit by profit-taking, as analysts suggested that the good news may be largely priced in to the stock.
Finisar , Lawson
and Sapient
gained 7% each on their earnings outlooks, while Ditech
gained that much on a share buyback.
VeriFone jumped 10% on a deal in China.
Saba lost 8% on a warning.
The Nasdaq surged 32 to 2582, the S&P 500 gained 22 to 1515, and the Dow soared 187 to 13,482. Volume rose to 3.05 billion shares on the NYSE, and 2.16 billion on the Nasdaq. Advancing issues led by a 26-6 margin on the NYSE, and by a 21-9 margin on the Nasdaq. Upside volume was 89% on the NYSE, and 79% on the Nasdaq. New highs-new lows were 104-109 on the NYSE, and 106-76 on the Nasdaq.
