Investing.com - U.S. stocks rose on Friday after weak U.S.
industrial production data preceded by dovish statements delivered
by Federal Reserve Chair Nominee Janet Yellen to Congress on
Thursday left many investors convinced stimulus tools will stay in
place for the near future.
Stimulus tools such as the Fed's USD85 billion in monthly bond
purchases aim to spur recovery by driving down interest rates,
boosting stock prices in the process.
At the close of U.S. trading, the Dow Jones Industrial Average
finished up 0.54%, the S&P 500 index rose 0.42%, while the
Nasdaq Composite index rose 0.33%.
The Federal Reserve reported earlier that U.S. industrial
production contracted 0.1% in October after having increased 0.7%
Analysts were expecting a 0.2% expansion, and the surprise
contraction fanned sentiments the Fed won't scale back its USD85
billion in monthly bond purchases until early 2014, which gave
stocks, the primary beneficiary of ultra-loose monetary policies, a
shot in the arm on Friday.
On Thursday, Fed Chair Nominee Janet Yellen told the Senate Banking
Committee that while the economy is on the mend, inflation and
unemployment rates have room to move closer to Fed comfort zones,
which markets interpreted as a sign the U.S. central bank wants to
see consistent improvements to economic indicators before winding
down stimulus tools.
Her comments put to rest lingering expectations that the Fed may
announce plans to scale back stimulus tools at its December
Also in the U.S., the Federal Reserve of Bank of New York said its
manufacturing activity index declined to -2.21 in November from
1.52 in October, defying expectations for a rise to 5.00.
Leading Dow Jones Industrial Average performers included
, up 2.21%,
, up 1.37%, and
, up 1.11%.
The Dow Jones Industrial Average's worst performers included
, down 0.66%,
, down 0.43%, and
, down 0.08%.
European indices, meanwhile, finished higher.
After the close of European trade, the EURO STOXX 50 rose 0.04%,
France's CAC 40 rose 0.19%, while Germany's DAX 30 rose 0.21%.
Meanwhile, in the U.K. the FTSE 100 finished up 0.41%.
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