Stocks are rising in early trading as investors anticipate interest rates will remain low for some time.
Stocks are rising in early trading as investors anticipate interest rates will remain low for some time.
Record-low interest rates and the resulting slide in the dollar have been major forces behind the recent surge in stocks. Federal Reserve officials speaking late Tuesday noted that the economic recovery is likely to be weak and reiterated that the central bank will keep rates low.
Investors continue to look to consumers for economic guidance, as Macy's reported a smaller loss in its third quarter than a year ago.
The Dow is up 46.40, or 0.5 percent, at 10,293.37. The Standard & Poor's 500 index is up 6.46, or 0.6 percent, at 1,099.47, while the Nasdaq composite index is up 14.96, or 0.7 percent, at 2,166.04.
U.S. government bond markets are closed for Veterans Day.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.
Wall Street anticipates a stronger open Wednesday as investors keep rallying around the expectation that interest rates will remain low for some time.
Record-low interest rates and the resulting slide in the dollar have been major forces behind the recent surge in stocks. Federal Reserve officials speaking late Tuesday noted that the economic recovery is likely to be weak and reiterated that the central bank will keep rates low.
Investors, after pushing the Dow Jones industrial average to new highs for the year, continue to look past some of the economy's trouble spots, including rising unemployment, which now stands at 10.2 percent.
However, a number still believe the recent surge in stocks has been overdone given the economy's weakness. And any news that indicates a worsening of the economy, such as a drop in consumer spending, could halt the rally.
The market got news on the consumer Wednesday from Macy's, as the retailer reported a smaller loss in its third quarter than a year ago. The Cincinnati-based department store operator said it benefited from tight inventory controls and a decision to localize merchandise to regional markets. It also raised its outlook, but analysts expected more and its shares fell 3.9 percent in premarket trading.
Department stores continue to face big challenges as shoppers — worried about job security and tight credit — keep their focus on basics like food. Without the help of the consumer, which accounts for around for 70 percent of the U.S. economy, an economic recovery will be muted.
Dow futures rose 51, or 0.5 percent, to 10,268. Standard & Poor's 500 index futures rose 7.00, or 0.6 percent, to 1,098.90, while Nasdaq 100 index futures rose 12.00, or 0.7 percent, to 1,784.50.
The euro was down slightly against the dollar Wednesday. Gold prices rose, while oil prices also edged higher.
Markets overseas are higher Wednesday, boosted by positive economic data from China and Japan and news that employment is up in Britain.
Japan's Nikkei stock average rose 0.1 percent. In afternoon trading, Britain's FTSE 100 was up 1.1 percent, Germany's DAX index was up 1.3 percent, and France's CAC-40 was up 1.2 percent.
U.S. government bond markets are closed for Veterans Day.
