U.S stocks inch up on talk Fed stimulus to stay in place; Dow up 0.01%

U.S stocks inch up on talk Fed stimulus to stay in place; Dow up 0.01%

Submitted by caseyb23 on Tue, 07/23/2013 - 02:12

U.S stocks inch up on talk Fed stimulus to stay in place; Dow up 0.01%

Investing.com – U.S. stocks ended Monday higher after a lackluster session that saw share prices fall on earnings and soft housing data, though expectations that Federal Reserve stimulus measures will stay in place bolstered prices in the end.

Stimulus programs such as low interest rates and the Fed's monthly purchases of USD85 billion in assets suppress borrowing costs across the economy and make stocks an attractive buy.

At the close of U.S. trading, the Dow Jones Industrial Average finished up 0.01%, the S&P 500 index rose 0.20%, while the Nasdaq Composite index rose 0.36%.

The National Association of Realtors reported earlier that existing home sales in the U.S. fell 1.2% to 5.08 million units in June, missing market calls for sales to rise 0.6% to 5.25 million units in June.

Sales for May were revised down to 5.14 million from a previously reported 5.18 million.�

The report added sales were up 15.2% from June of last year, while average house prices jumped 13.5% on a year-over-year basis.

While the numbers indicated that recovery continues in the housing sector, markets concluded the figures were soft enough to sway monetary authorities to keep stimulus programs in place for now, which are bullish for equities.

Elsewhere, fast-food giant McDonalds and toymaker Hasbro released second-quarter earnings that missed expectations, though trading remained largely quiet and within a 60-point range.�
Leading Dow Jones Industrial Average performers included Microsoft, up 1.91%, Hewlett-Packard, up 1.51%, and Bank of America, up 1.22%.

The Dow Jones Industrial Average's worst performers included McDonald's, down 2.66%, Intel, down 1.17%, and Walt Disney, down 1.14%.

European indices, meanwhile, finished mixed.

After the close of European trade, the EURO STOXX 50 rose 0.34%, France's CAC 40 rose 0.37%, while Germany's DAX 30 finished down 0.01%. Meanwhile, in the U.K. the FTSE 100 finished down 0.11%.