NEW YORK — U.S. stocks ended a volatile session with modest gains on Wednesday after minutes from a U.S. Federal Reserve meeting indicated that the central bank remained on track for a interest rate hike this year.
Major indexes moved between negative territory and session highs after the news as traders parsed the minutes for clues as to when the first rise could occur. Some Fed participants went on record saying they expected upcoming economic data would warrant an initial rate increase in June, while others anticipated a hike later in 2015 due to recent strength in the U.S. dollar.
If the Fed moves monetary policy in an arbitrarily fast manner, that would be a detriment for stocks.
Market participants had been expecting the first rate hike to come in September or later, with last week’s much weaker-than-expected March payroll report pointing to slowing growth. The central bank has said it would only raise rates when data suggests the economy is strong enough to withstand it.
“June would come as a surprise,” said Alan Gayle, senior investment strategist and director of asset allocation at RidgeWorth Investments in Atlanta, Georgia. “If the Fed moves monetary policy in an arbitrarily fast manner, that would be a detriment for stocks.”
Fed officials acknowledged risks from overseas and a weak start to the year at their March meeting but remained confident in the strength of the recovery, the minutes showed.
Markets were supported boosted by merger activity in the health care sector, though the energy sector was weak as crude oil plunged.
Stocks Making Moves
Mylan (MYL) jumped 14.8 percent to $68.36 after the generic drugmaker offered to buy Perrigo (PRGO) for about $29 billion in cash and stock. Perrigo jumped 18.4 percent to $195. The two companies were the biggest percentage gainers on the S&P 500.
U.S. crude futures dropped 6.6 percent to settle at $50.42 a barrel after U.S. Energy Information Administration data showed the largest weekly build in oil inventories since March 2001. The news offset Royal Dutch Shell’s (RDS-A) $70 billion bid for rival BG Group.
The S&P Energy index fell 1 percent while Exxon Mobil (XOM) lost 2 percent to $84.06 and Chevron (CVX) shed 1.7 percent to $106.66.
The Dow Jones industrial average (^DJI) rose 27.09 points, or 0.15 percent, to 17,902.51, the Standard & Poor’s 500 index (^GSPC) gained 5.57 points, or 0.27 percent, to 2,081.9 and the Nasdaq composite (^IXIC) added 40.59 points, or 0.83 percent, to 4,950.82.
After the market closed, Alcoa (AA) reported first-quarter revenue that was below expectations. The stock, which is viewed as the unofficial kick-off to the earnings season, was flat in extended trading.
Advancing issues outnumbered declining ones on the NYSE by 1,847 to 1,163, for a 1.59-to-1 ratio on the upside; on the Nasdaq, 1,739 issues rose and 979 fell for a 1.78-to-1 ratio favoring advancers.
The benchmark S&P 500 index was posting 12 new 52-week highs and no new lows; the Nasdaq composite was recording 79 new highs and 29 new lows.
About 5.68 billion shares traded on all U.S. platforms, according to BATS exchange data, below the month-to-date average of 6.25 billion.
What to watch Thursday:
Walgreen (WBA) reports quarterly financial results before U.S. markets open.
The Labor Department releases weekly jobless claims at 8:30 a.m. Eastern time.
At 10 a.m., the Commerce Department releases wholesale trade inventories for February, and Freddie Mac releases weekly mortgage rates.
You probably want to have your own hammer, wrench and screwdriver on hand for those around-the-house projects that spring up, but there’s no reason to go out and buy a pricey piece of machinery you’ll only use once.
Power sanders, tile saws and post-hole diggers are essential for certain projects, but unless you’re an avid carpenter or a DIY enthusiast, chances are you won’t use them again anytime soon. Rather than buying them, rent them by the day from stores like Home Depot or Lowe’s.
1. Power tools
Once your class is over, you’ll no longer need the textbooks it requires. Why pay hundreds of dollars for them, especially when the campus bookstore will give you cents on the dollar when you try to sell them back?
College is expensive enough. Save some much-needed cash by checking out textbook rental sites like Chegg.com, TextbookRentals.com and BookRenter.com.
2. Textbooks
Guys have no trouble renting a tuxedo for a wedding or formal event, but when it comes to evening gowns, most women pay top dollar for fancy dresses they only wear once or twice. Rent these dresses instead and you’ll not only save money; you’ll be able wear a different dress for every occasion without the guilt. Check out RentTheRunway.com, LendingLuxury.com and JJsHouse.com to rent prom dresses, evening gowns, accessories and more.
3. Special-occasion attire
The trouble with buying video games is they often cost a pretty penny, and you don’t know until you start playing the game whether or not you’ll love it. If you don’t, you’ll have a great time playing it through once or twice, and then it sits on a shelf collecting dust.
By choosing to rent your video games through a service like GameFly, you’re able to explore a wide range of titles to find which ones you like. If you love one, you can always buy it. If not, just drop it back in the mail and try the next one, no money lost.
4. Video games
Unless you’re a fanatic, chances are you need seasonal outdoor gear only once or twice a season, which hardly justifies the expense of buying and storing it year-round.
Rent backpacking and camping gear from stores like REI or websites like MountainSideGearRental.com. Rent jet skis and surfboards from beach vendors. Rent snowmobiles, skis and snowboards from local ski venues and resorts. Unless it’s something you plan on making a regular hobby, you’re better off renting.
5. Seasonal outdoor gear
Too many of us have a treadmill in our basement that we bought with the best of intentions, used regularly for about a week, and have since turned into a place to hang laundry while it’s drying.
Unless you’re an established home gym rat and know that that new elliptical, stationary bike or training unit won’t be just a passing fad, go the rental route through sites like GymSource.com and BDFitness.net.
6. Exercise equipment
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