U.S. stocks jumped, with the Nasdaq Composite Index at a record high, as the Federal Reserve signaled it will continue to support the economy even as growth picks up.
The tech-heavy Nasdaq 100 (INDEXNASDAQ:.IXIC) hit 5,143.31, topping the previous high of 5,132.52 it touched on March 10, 2000. It was up 1.3 percent at 5,132.92 at 3:54 p.m. in New York.
The S&P 500 (INDEXSP:.INX) rose 13 percent to 2,121,21. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) gained 1.1 percent to 18,139.13, while
U.S. stocks briefly extended their rally on an unconfirmed report in German daily, Die Zeit, that Greece's aid will be extended until year-end but the IMF would not take part in the financing for the "time being".
Greek Finance Minister Yanis Varoufakis presented new proposals to counterparts in the euro zone meeting in Luxembourg, a Greek government official said.
The Fed said yesterday that the U.S. economy was likely strong enough to withstand an interest rate increase later this year but cut its economic growth forecasts for 2015.
Even though a majority of Fed officials continue to see higher rates by the end of 2015, they expect rates to rise slightly less by the end of 2016 and 2017 than they did in their March forecasts.
DATA:
The consumer-price index rose 0.4 percent in May from a month earlier, the biggest gain since February 2013, the Labor Department said today. Excluding the volatile food and energy categories, core prices increased 0.1 percent. Economists polled by The Wall Street Journal had expected overall prices to increase 0.5 percent and core prices to rise 0.2 percent.
Jobless claims fell 12,000 to 267,000 in the week ended June 13, the Labor Department said today. Economists had expected 276,000 new claims.
MOVERS:
BioMarin Pharmaceutical (NASDAQ:BMRN) climbed 12 percent to $138.34 after the Novato, California-based company said its experimental drug for achondroplasia, or dwarfism, helped children in a mid-stage trial.
Rite Aid (NYSE:RAD) retreated 3 percent to $8.65 after the third-largest U.S. drugstore chain operator reported slower-than-expected quarterly same-store sales growth as the introduction of new generic drugs hurt pharmacy sales.
Lumenis (NASDAQ:LMNS) surged 13.3 percent to $13.69 after saying it agreed to be acquired by investment firm XIO Group for about $510 million, a little over a year since the Israeli medical company went public in the U.S.
Oracle (NYSE:ORCL) slid 4.9 percent to $42.71 after the largest maker of database software posted fiscal fourth-quarter revenue and profit that missed analysts’ estimates.
Jabil Circuit (NYSE:JBL) slumped 7.9 percent to $22.42. The electronic maker earned an adjusted $0.49 per share for its latest quarter, matching estimates, but its sales fell below forecasts as did its current quarter and full-year earnings forecast.
Southwest Airlines (NYSE:LUV) fell 0.1 percent to $33.82 after Barclays Plc cut its rating on the carrier to underweight, similar to sell, from overweight.
Kroger (NYSE:KR) rose 0.6 percent to $73.32 after reporting better-than-expected earnings in its first quarter as the grocer also lifted a key sales target for the year.
Fitbit (NYSE:FIT) jumped 49.7 percent to $29.93 in its NYSE trading debut. Its IPO has been priced at $20 a share, which is already above raised expectations, The Wall Street Journal reported. The offering raised $731.5 million and values the fitness device maker at approximately $4.1 billion.
Colgate Palmolive (NYSE:CL) advanced 1.3 percent to $67.25. Canaccord upgraded the consumer products company's shares to "hold" from "sell," after a pullback from its March highs.
Bankrate (NYSE:RATE) tumbled 18.8 percent to $11.24. Bankrate earned an adjusted $0.19 per share for its latest quarter, missing estimates by $0.01, and its revenues fell short of forecasts as well.
COMMODITIES:
Gold for August delivery leapt 2.1 percent to settle at $1,202 an ounce on Comex.
July crude tacked on 0.9 percent to settle at $60.45 a barrel on the New York Mercantile Exchange.