Stocks rise ahead of Fed meeting
NEW YORK, June 29 (UPI) -- Prices on the New York Stock Exchange were higher in late-morning trading Tuesday ahead of the Federal Reserve's meeting on interest rates.
Stocks also rose on the Nasdaq Stock Market.
The Dow Jones industrial average was ahead 37.39 or 0.36 percent to 10,394.48. The Nasdaq composite Index was ahead 10.74 or 0.53 percent to 2,030.56 and the S&P 500-stock index was ahead 1.93 or 1.17 percent to 1,135.28.
U.S. Treasury bonds and notes inched higher. The popular 10-year note added 3/32, or about 75 cents for each $1,000 invested. The yield, which moves in the opposite direction of its price, eased to 4.71 percent.
The U.S. dollar strengthened on global currency markets, rising to 108.12 Japanese yen from 107.89 late Monday while the euro eased against the greenback to $1.2124 from $1.2185.
Analysts said investors opted for the sidelines to focus on the two-day meeting of Federal Reserve policy makers. The nation's top bank is widely expected to lift its federal funds target rate one-quarter percentage point at the meeting, which ends on Wednesday.
In other market action, in Asia, stocks eased in Tokyo.
Consumer confidence jumps
NEW YORK, June 29 (UPI) -- The Conference Board of New York said Tuesday consumer confidence in June jumped to its highest level in two years.
The Board said its consumer confidence index, which was virtually unchanged in May, jumped to 101.9 in June, its highest level since June 2002 and up from 93.1 in May.
Wall Street economists had expected the index to inch up to 95 during the month.
The Board said its present situation index climbed to 104.8 from 90.5 in May while its expectations index rose to 100.0 from 94.8 a month earlier.
The survey is based on a representative sample of 5,000 U.S. households.
"The strong improvement in current conditions has propelled Consumer Confidence to levels not seen since June 2002," said Lynn Franco, director of the Conference Board's consumer research center.
"Looking ahead, consumers expect the economy to continue to grow at a healthy clip and to continue to generate additional jobs. And, with prices at the pump beginning to ease, the short-term outlook remains favorable."
The employment outlook remained upbeat as consumers anticipating more jobs to become available increased to 19.7 percent from 18.7 percent. Those expecting fewer jobs edged down to 17.1 percent from 17.3 percent.
The report also showed the proportion of consumers anticipating an increase in their incomes rose to 19.3 percent from 17.1 percent a month ago.
Fed expected to lift rates
WASHINGTON, June 29 (UPI) -- The U.S. Federal Reserve began its policy meeting Tuesday amid speculation it will hike interest rates for the first time in four years.
Wall Street economists are expecting the Fed to hike its key federal funds rate, which influences borrowing costs throughout the economy, by a quarter point to 1.25 percent from 1 percent at the conclusion of its two-day meeting on Wednesday.
The federal funds rate was cut to the four-decade low of 1 percent from 1.25 percent June 25, 2003, and has held at that level at the central bank's last nine meetings.
The nation's top bank cut its target for short-term rates 11 times in 2001, a record for a calendar year, to fight the effects of a recession that likely began in March 2001 and was worsened by the Sept. 11, 2001, terror attacks. The central bank cut rates at each of its eight scheduled meetings in 2001 and during three impromptu conference calls. Three of the reductions occurred after the terrorist attacks on New York and Washington.
The Fed's decision on rates is expected at approximately 2:15 p.m. EDT on Wednesday.
Apple releasing new search-enhanced system
SAN FRANCISCO, June 29 (UPI) -- California's Apple Computer has ratcheted up its confrontation with Microsoft by promising to release a powerful search engine early next year.
Known as Spotlight, the feature will let users quickly find words and concepts stored on their hard drives by using technology borrowed from Apple's iTunes online music service, the New York Times reported Tuesday.
Spotlight will be part of the next version of the Macintosh operating system, called Tiger, set for release in the first half of next year, Apple chief executive Steven Jobs said Monday at a trade show.
Spotlight/Tiger is at least a year ahead of Microsoft's next version of Windows, known as Longhorn, which also will feature new search capabilities.
"We think we are years ahead of Longhorn," Jobs said. "The other guys have been talking about it and we're doing it."
Apple is "clearly going after Longhorn," said Tim Bajarin, president of Creative Strategies, a market research company in Santa Clara, Calif. "They're putting in a lot of features that will be in Longhorn, and that's not coming out until 2006 or 2007."
