US shares erased earlier gains after the Federal Reserve decided to keep interest rates unchanged at near zero, but indicated that a rate hike decision might be taken at its next meeting in December.
At the close, the benchmark Dow Jones Industrial Average (INDEXDJX:.DJI) was up 198 points at 17,780, the Nasdaq Composite (INDEXNASDAQ:.IXIC) advanced 66 points to 5,096 and the S&P 500 (INDEXSP:.INX) gained 24 points to stand at 2,090.
“The Federal Reserve has played it safe and left monetary policy unchanged,” James Knightley, senior economist at ING Bank, said in emailed remarks.
Apple (NASDAQ:AAPL) was in focus as ever as the tech titan reported record results and shares added 3.4% to US$118.27 as the iPhones seller cheered the market with record profits swollen by strong demand in China.
Apple’s full-year net income of US$53bn was not only the biggest annual profit number in the company’s history; it was the biggest profit declared by any company, topping Exxon Mobil’s US$45.2bn in 2008.
Since falling into line with the rest of the smartphone market and introducing models with a bigger screen, the company’s iPhone sales have gone through the roof in China, where a larger screen is considered essential...
Walgreens Boots Alliance (NASDAQ:WBA) agreed to acquire Rite Aid (NYSE:RAD) in a $17.2 billion deal and reported profit that topped analysts’ estimates in its fourth quarter. But shares eased around 7% in Walgreens to US$88.7, while Rite Aid shares also eased by about the same percentage.
Northrop Grumman (NYSE:NOC) touched a fresh record high after the maker of the stealth B-2 bomber won a $21.4bn contract from the Pentagon to develop and build a next-generation long-range strike bomber.
Shares in the Virginia-based company rose 5.3% to $190.82 after rising to as high as $193.99.
On the flipside, social media giant Twitter (NYSE:TWTR) slid 1.1% to $31.00, trimming losses of as much as 7% after the company issued downbeat revenue guidance and reported slower user growth than anticipated.
Hershey (NYSE:HSY) sank 6.4% to $88.28 as the chocolate maker cut its full-year profit forecast, hurt by weak demand in North America and higher marketing costs ahead of the holiday season.