Closing Update: Stocks Extend Rally As Yellen Assures Wall Street of Seamless Fed Policy, Raised Debt Ceiling

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Wall Street gave a warm welcome to new Federal Reserve Chair Janet Yellen, reflected in a 190-point gain for the Dow Industrials and a nearly 20-point move for the broader S&P 500, to advance the recent rally. Yellen told the House Financial Services Committee she intends to maintain the Fed's low interest-rate policy. With Yellen's remarks amplified by upbeat earnings, all three major indices closed up just over 1%.

Yellen's testimony continues Thursday before the Senate Banking Committee in which she will likely reassure the financial markets of the same commitment to Bernanke's policies by encouraging modest economic growth with low short-term rates.

The Humphrey-Hawkins testimony overshadowed a less than expected gain in December wholesale inventories, as well as hawkish comments from new FOMC member and Philly Fed President Charles Plosser. Plosser reiterated his preference to end QE "sooner rather than later" and would have liked to have seen the taper begin earlier and more "expeditiously."


Here's where the markets stand at the close:

US MARKETS

Dow Jones Industrial Index was up 192 (+1.2%) to 15,994

S&P 500 was up 19.9 (+1.1%) to 1,819

Nasdaq Composite Index was up 42 (+1%) at 4,191

GLOBAL SENTIMENT

FTSE 100 was up 1.23%

Nikkei 225 was CLOSED

Hang Seng Index was up 1.78%

Shanghai China Composite Index was up 0.84%

UPSIDE MOVERS

CADX To be acquired by Mallinckrodt ( MNK ) for $1.3 billion

DHRM Stock continues to advance as company begins road-show to showcase product advancements

OPTT Announced a $205 mln deal with Lockheed Martin ( LMT ) to develop wave energy off Australia's coast

DOWNSIDE MOVERS

NNVC SeekingAlpha article called it a "house of cards" and called it the "worst reverse merger we have ever seen."

WPX Expects to record $1.4 billion in Q4 pretax write-downs due to lower natural-gas prices

BLOX Lowered its Q2 2014 revenue forecast



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


This article appears in: Investing , Commodities

Referenced Stocks: MNK , LMT

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As of 12/26/2014, 04:15 PM


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