Advertisement

US stocks rise as market awaits Fed announcement

Wall Street stocks Wednesday moved higher in early trade following a weak US inflation report as the market awaited a policy update from the Federal Reserve.

About 25 minutes into trade, the Dow Jones Industrial Average stood at 17,151.88, up 83.01 points (0.49 percent).

The broad-based S&P 500 advanced 12.37 (0.63 percent) to 1,985.11, while the tech-rich Nasdaq Composite Index rose 24.79 (0.55 percent) to 4,572.62.

US consumer prices fell 0.3 percent in November, much more than forecast, due to a 3.8 percent fall in energy prices.

The slowdown in inflation eases pressure on the Fed to raise interest rates from the zero-level where they have sat for six years.

The Fed completes a two-day policy meeting later Wednesday in which it is expected to update the outlook for tightening monetary policy in the coming year.

US stocks have fallen the last three sessions amid concerns over the sharp fall in oil prices and a big drop in the Russian ruble.

Package-delivery giant FedEx fell 4.9 percent despite reporting a 23 percent gain in second-quarter earnings to $616 million. The results translated to $2.14 per share, eight cents shy of Wall Street expectations as the company benefited less than anticipated from lower fuel prices.

Rival UPS fell 2.1 percent.

Food manufacturer General Mills rose 1.6 percent as adjusted earnings for the second quarter of 80 cents per share bested expectations by three cents.

Auspex Pharmaceuticals shot up 96.7 percent after announcing positive clinical results for a drug under development to treat Huntingdon's disease.

Bond prices were mixed. The yield on the 10-year US Treasury held steady at 2.07 percent, while the 30-year rose to 2.71 percent from 2.70 percent. Bond prices and yields move inversely.