U.S. stock market posted their gain Wednesday as investors tried to keep a September rally alive. Rising stocks slightly outpaced falling ones on the New York Stock Exchange. Major indexes turned higher around midday after getting good news on U.S industrial production.
According to John Brady, a senior vice president at MF Global, technically it remained a lot of chop trade with an upside bias.
The markets set off rallying two weeks ago due to a strong manufacturing report from the Institute for Supply Management. Traders paid more attention to the industrial production report. Previously, traders were flooded by poor reading on manufacturing activity in New York.
Stocks rallied dramatically during the first half of the month. The summer malaise has turned into the fall malaise, and September is historically a weak period for the market.
Broader indexes also rose. The Dow Jones Industrial Average advanced 46.24 points to 10,572.73. The index was up just 1.4 percent for the year to date, following sharp declines in May and June.
The Standard & Poor’s 500 Index jumped 0.4% to 1,125.07 and The Nasdaq Composite Index advanced 11.55 points to 2,301.32.
More than eight shares posted gain for every seven losing ground on the New York Stock Exchange. Palo Alto-headquartered Hewlett-Packard Co (NYSE: HPQ) was up 0.8%.
MasterCard Inc. (NYSE:MA) expects its income to rise at least 20 percent this year. Its shares added $ 10.43, or 5.2 percent, to $ 210.18.
The largest confectionery, food, and beverage corporation – Kraft Foods Inc., (NYSE: KFT) said that it expected its earnings would jump between 9 percent and 11 percent over the course of upcoming three months. Shares were up 53 cents to $ 31.58.
Japan intervened in the currency markets for the first time since 2004 by stemming the yen’s appreciation against the dollar, fueling a rise in the U.S. dollar above ¥85.
Following the move, the dollar bought as much as ¥85.13. The euro strengthened to 110.32 yen from 107.75. The dollar index was traded at 81.691, down from 81.064 late North American trading yesterday.
However, the Ministry of Finance’s step in the foreign exchange market will “contribute to stable foreign exchange rate information”. Masaaki Shirakawa noted that the uncertainty over the U.S. economy meant downside risks to Japan “warrant attention”. Recently the Bank of Japan implemented a scheme to help revitalize a recovery.