U.S. Stocks Advance After Fed Minutes as Consumer Stocks Rally

What Did the FOMC Minutes Signal About Rates This Year?

U.S. stocks added to their New Year’s rally Wednesday as minutes from the Federal Reserve’s latest policy meeting were released. Industries from retailers to automakers and banks all advanced.

The S&P 500 Index added 0.6 percent to 2,270.75 at 4 p.m. in New York after a 0.9 percent climb on the first day of the year that was the benchmark gauge’s biggest advance in almost a month. The Dow Jones Industrial Average closed within 60 points of the 20,000 level, up 0.3 percent to 19,942.

  • Russell 2000 up 1.6% for biggest gain in a month
  • 9 of 11 sectors higher with energy and phones shares down 0.3%
  • Materials stocks up 1.4% on back of 1.3% gain in Bloomberg Commodities Index
    • Freeport-McMoRan, Mosaic and CF Industries all added at least 3.6%
  • Discretionary stocks up 1.3% as staples shares gain 0.1%
  • S&P 500 now trading back above 10-day moving average
  • Fed meeting minutes indicated officials intended to maintain a gradual approach to raising interest rates even as risks of faster economic growth emerge
  • A string of strong data from China and Europe helped U.S. stocks advance yesterday, ahead of Friday’s payrolls report
  • VIX down 7.8% for second straight decline; ended 2016 with biggest annual slump since 2013

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— With assistance by Blaise Robinson

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