Markets Right Now: US stocks open higher

U.S. stocks edged higher on Tuesday in another cautious day of trading as investors awaited the outcomes of Federal Reserve and Bank of Japan policy meetings that will conclude on Wednesday.

US stocks were broadly higher Thursday, helped by a rise in prices for crude oil and other commodities.

With the global economy showing few signs of rebounding and investors fretting about the limits of major central banks’ easing, the BOJ’s move came as a welcome relief for markets.

“If we had not received these mixed messages, I don’t think anybody would have been surprised”, said Sam Stovall, U.S. equity strategist for S&P Capital IQ.

In New York, the Dow Jones industrial average was up 54.92 points at 18.184.88, while the S&P 500 gained 6.80 points at 2,146.56. The Nasdaq composite added 28 points, or 0.5 percent, to 5,272.

OIL: Benchmark U.S. crude added $1, or 2.3 percent, to $44 a barrel in NY. Analysts said new orders lagged expectations. Chevron rose 1 percent.

The Federal Reserve kept its key interest rate unchanged Wednesday but signaled it is likely to raise it later this year.

Later Wednesday the Federal Reserve will release its latest decision on interest rates. For several days stocks made big moves up and down as investors wondered if that would happen. Pointing to the “roughly balanced” language in the Fed statement, she said, “this statement basically increased the chances of a December rate hike”. The Dow rose as much as 131 points in morning trading and fell as much as 30 points in the afternoon. The ruling boosted dividend-paying companies while bond prices changed course and moved higher.

Bond prices rose. The yield on the 10-year U.S. Treasury note fell to 1.69% from 1.71%.

Software maker Adobe Systems climbed after it raised its forecasts for the year.

ASCENA PLUNGES: Ascena Retail Group, the parent of Ann Taylor, Lane Bryant and Dress Barn, dropped to a six-year low. Abbott stock edged up 7 cents to $41.94 and Johnson & Johnson lost 20 cents to $118.05.

FedEx (FDX.N) shares gained 6.9 percent after the package delivery company’s profit report.

Earlier, the Bank of Japan overhauled its monetary policy to target interest rates. It said it will continue trying to stimulate the Japanese economy until inflation is higher than 2 percent a year, but it didn’t reduce interest rates any further. However the Bank of Japan is also meeting this week, and Koesterich said investors aren’t sure how Japan’s central bank will act.

CURRENCIES: The dollar slipped to 101.52 yen from 101.62 yen in the previous session.

Student lender Navient fell 51 cents, or 3.7 percent, to $13.28 after federal regulators began investigating one of its shareholders.

Technology products distributor Tech Data jumped after it said it will buy the technology solutions business of Avnet for $2.6 billion in cash and stock. Cooperman denied the charges.

BUYBACKS: Microsoft said it will buy back $40 billion in stock and also raised its quarterly dividend. Verizon Communications rose 48 cents, or 1 percent, to $52.35.

In Toronto, the S&P/TSX composite index climbed 188.84 points at 14,710.82, led by large gains in resources including gold, materials, metals and energy.

General Motors rose 3 per cent after Morgan Stanley upgraded the stock to “overweight”. Heating oil added 2 cents, or 1.7 percent, to $1.43 a gallon. Natural gas climbed 11 cents, or 3.9%, to $3.05 per 1,000 cubic feet. The euro gained to $1.1184 from $1.1190. The technology giant’s stock rose 59 cents, or 1 percent, to $57.40. Its stock gave up 46 cents, or 3.6 percent, to $12.23.

OVERSEAS: France’s CAC 40 slipped 0.1 percent while Germany’s DAX rose 0.2 percent.

The Standard & Poor’s 500 index gained 10 points, or 0.5 percent, to 2,149. Tokyo’s Nikkei 225 reversed an early loss and closed 1.9 percent higher.