U.S. Stocks Extend Gains to a 5th Day as Tech Companies Rise


U.S. stocks rose for the fifth consecutive day Wednesday as investors went on a late buying spree. The gains came after news that the Federal Reserve plans to start reducing its huge portfolio of bonds. The Standard & Poor’s 500 index closed at a record high.

Stocks were slightly higher for most of the day as the market kept chipping away at the losses it suffered one week before. Technology companies like TurboTax maker Intuit and materials companies including industrial gas company Praxair made some of the biggest gains.

In the afternoon the Federal Reserve released the minutes from its latest meeting. Officials discussed steps for shrinking the central bank’s $4.5 trillion in bond holdings and Wall Street liked what it saw.

The Fed bought huge amounts of bonds during the global economic crisis in an effort to stimulate the economy. When the Fed suggested in April that it was considering reducing its portfolio, investors were unnerved. But when investors saw some details of how the plan might look, they were pleased.

The Standard & Poor’s 500 index picked up 5.97 points, or 0.2 percent, to 2,404.39. The Dow Jones industrial average gained 74.51 points, or 0.4 percent, to 21,012.42. The Nasdaq composite rose 24.31 points, or 0.4 percent, to 6,163.02. The Russell 2000 index of small-company stocks added 1.53 points, or 0.1 percent, to 1,382.51.

In the wake of the Fed’s disclosure, bond prices turned higher. The yield on the 10-year Treasury note fell to 2.25 percent from 2.28 percent. High-dividend stocks including utility companies and real estate investment trusts climbed as investors looked for yield. NRG Energy jumped 88 cents, or 5.5 percent, to $16.76 and Simon Property Group gained $2.53, or 1.6 percent, to $159.78.

Industrial gas company Praxair rose after it agreed to terms with Germany’s Linde. The companies said they would combine in an all-stock deal in December, part of a wave of consolidation in the chemical and materials industries. Praxair picked up $2.30, or 1.8 percent, to $132.27. Linde’s German stock rose 2.8 percent.

Benchmark U.S. crude lost 11 cents to settle at $51.36 per barrel in New York while Brent crude, used to price international oils, sank 19 cents to $53.96 a barrel in London. Oil prices have rallied lately as members of the OPEC cartel and other countries prepare to meet and discuss production. Those nations are expected to extend last year’s production cut in a concerted attempt to prevent oil prices from falling.

Wholesale gasoline gave up 1 cent to $1.65 a gallon. Heating oil remained at $1.61 a gallon. Natural gas lost 1 cent to $3.21 per 1,000 cubic feet.

Gold fell $2.40 to $1,253.10 an ounce. Silver lost 2 cents to $17.12 an ounce. Copper fell 1 cent to $2.58 a pound.

The dollar rose to 111.90 yen from 111.76 yen. The euro edged up to $1.1195 from $1.1185.

The FTSE 100 index in Britain was up 0.3 percent and Germany’s DAX fell 0.2 percent. The CAC 40 in France was 0.2 percent lower. The Hang Seng in Hong Kong finished unchanged after Moody’s downgraded the Chinese government’s credit rating. The firm said it expects China’s financial strength to erode as debt rises, but its rating for the country is still relatively high. Tokyo’s Nikkei 225 rose 0.7 percent. The Kospi in South Korea gained 0.2 percent.