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US stocks on the up ahead of closely-watched FOMC minutes

US stocks reached new records at the close as the bull run continues.
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The Federal Reserve
  • US benchmarks at new records

  • TSX closes higher

  • FOMC minutes indicate gradual rate rises

Wall Street shares notched up new record at the close as the FOMC minutes showed less of a hawkish stance on rate rises than may have been expected.

Several Fed officials indicated at last month’s meeting that they believe it would be longer than previously thought to get inflation back to the 2% target.

Bu the minutes also showed there was a desire to hike rates another time, but that rises would be at a gradual rate

The Dow Jones added over 42 points at 22,872, the Nasdaq gained 16.30 at 6,603 and the S&P 500 added 4.60 at 2,555.

In Toronto , the TSX added almost 40 at 15,802.

In equities, investment giant BlackRock Inc (NYSE:BLK) added 1.89% to US$473.93 after it posted better-than-expected quarterly results.

Delta Air Lines Inc (NYSE: DAL) shares flew 0.70% higher as its results also beat forecasopped forecasts.

Aerie Pharmaceuticals Inc (NASDAQ:AERI) shares gained over 16% to US$1.83 as it unveiled positive preliminary FDA data on Rhopressa earlier this morning.

This is a treatment for glaucoma,  and according to the FDA website is effective in lowering eye pressure.

MID-SESSION

US stocks were higher with just half an hour or so before the publication of the previous month's FOMC minutes.

The Dow Jones was up over 12 points at 22,864, while the S&P 500 added 1.04 at 2,551.

The Nasdaq is up 5.08 at 6,592.

In Toronto, the TSX is up by over 39 points at 15,809.

In the September meeting, the US central bank announced plans  to start reducing its balance sheet by US$10 billion per month.

David Madden, at London-based CMC Markets, said: "The unwinding of the balance sheet was expected and it’s a sign the US economy is strong enough to operate will less assistance. Interest rates were kept on hold at the meeting, and the Fed admitted they couldn’t explain why inflation is relatively weak.

"Traders will be trying to decipher the language and figure out if the bank will hike interest rates in December."

OPEN

US stocks started little changed as the market awaits the closely watched Fed minutes from last month's meeting.

The Dow Jones is up almost six points at 22,836 at the time of writing, while the S&P 500 is down 0.12 at 2,550.

The tech heavy Nasdaq is down 1.55 at 6,585.

The oil price is up 0.10% to US$50.97 each.

In Toronto, the TSX was down over 33.20 at 15,803.

Kroger Company (NYSE:KR) is top riser on S&P 500, adding 5.75% to US$ 21.71, while Fastenal (NYSE:FAST) is among the biggest laggards as the goods distributor  highlighted higher employee costs and the impact of hurricanes on its third-quarter earnings.

Accessories and lifestyle company Coach Inc (NYSE:COH) shed 2.17% to US$39.13  as it revealed it was changing its name to Tapestry Inc and its ticker to 'TPR' with effect from the end of this month.

Three years ago, the firm said it wanted to build beyond the Coach brand. 

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