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U.S. stocks rise with continued Fed stimulus despite earnings hit

Earnings released today showed a hit to top U.S. companies, but investors kept putting money into the market as the Federal Reserve indicated continued stimulus.

By Sonali Basak
Investor confidence rallied the market after the Fed announced prolonged stimulus, leading indexes to record territory. (File/UPI/John Angelillo)
Investor confidence rallied the market after the Fed announced prolonged stimulus, leading indexes to record territory. (File/UPI/John Angelillo) | License Photo

Nov. 14 (UPI) -- U.S. stocks rose Thursday with word from the Fed that the fiscal stimulus propping up the economy is likely to continue until the economy strengthens, upon mixed economic data.

Janet Yellen, the nominee for Federal Reserve chair, testified to Congress today that the Federal Reserve's $85 billion-a-month bond-buying program will continue past December, until the the economy is less fragile.

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Stocks pushed to record territory with the Dow Jones industrial average moving 0.3 percent up to 15,872, and the S&P 500 inching upward 0.4 percent to 1,789.

The tech-heavy Nasdaq also rose 0.1 percent, despite Cisco dropping 12 percent and weighing down technology stocks, including Hewlett Packard and IBM. Cisco, widely used by businesses and governments, is closely watched as an indicator for the world economy.

Walmart, the world's largest retailer, and Cisco, the largest computer networking company, both disappointed Wall Street with lower-than-expected revenues, though Walmart's earnings were slightly better than expected. Walmart, a marker for consumer spending, saw shares inch upward.

Retail is being closely watched moving into the holiday season. Kohl's dropped almost 8 percent due to disappointing earnings.

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Jobless claims, also released Thursday, declined to 339,000. Economists were expecting 330,000. Internet and social media stocks like Netflix and Facebook climbed to grow the Nasdaq. Utilities and homebuilders also advanced, pushing up the S&P.

European and Asian stocks also rallied, and 10-year U.S. Treasury notes were relatively flat at 2.70 percent.

[Wall Street Journal] [CNN Money] [Bloomberg]

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