Tuesday, September 20, 2011

U.S. stocks rose sept 20 2011

U.S. stocks rose sept 20 2011 ; U.S. stocks rose, erasing an earlier drop, as speculation the Federal Reserve will do more to stimulate growth offset concern about the economic recovery.

All 10 groups in the Standard & Poor's 500 Index rallied as gains were led by health-care and utility shares. Newmont Mining Corp., the largest U.S. gold producer, added 5.4 percent as the metal climbed. PulteGroup Inc., the largest U.S. homebuilder by revenue, and Travelers Cos., the lone insurer in the Dow Jones Industrial Average, climbed at least 2.5 percent after analysts raised their recommendations for the companies.

The S&P 500 gained 0.9 percent to 1,215.32 at 10:54 a.m. New York time. Earlier today, stocks fluctuated between gains and losses after the International Monetary Fund cut its forecast for global economic growth. The Dow climbed 96.01 points, or 0.8 percent, to 11,497.02 today.

Federal Reserve officials might propose new measures to galvanize the economy when the Fed Open Market Committee completes a two-day meeting tomorrow. Ben S. Bernanke, the central bank's chairman, told economists Sept. 9 in Minneapolis that policy makers have measures at hand and are “prepared to employ these tools as appropriate.”

One of those untested policy tools is likely to be a move known as “Operation Twist,” in which the Fed would replace short-term Treasuries in its $1.65 trillion portfolio with long- term bonds, according to 71 percent of 42 surveyed economists. The move, with its goal to bend the yield curve, will probably fail to reduce the 9.1 percent unemployment rate, 61 percent of the economists said. source news.businessweek.com
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