Stocks turned in solid gains on bets that the Fed will raise interest rates when its meeting wraps up on Wednesday. Bobbi Rebell reports.
A rally in oil prices and a bet the Fed will raise interest rates at its meeting Wednesday fueled Wall Street. Leading the charge: energy stocks ExxonMobil and Chevron and banks JPMorgan Chase and Wells Fargo. Investment adviser Ross Gerber: SOUNDBITE: ROSS GERBER, CEO, GERBER KAWASAKI (ENGLISH) SAYING: "I think, the lift-off is helping propel stocks higher. We've been waiting for this moment. It feels like a year plus, and it's finally here. And the economy can sustain higher rates." Inflation data could give the Fed more confidence to make that move. Consumer prices excluding food and energy rose in November for the third straight month. But homebuilder confidence eased this month and factory activity in New York state shrank. Valeant Pharmaceuticals shares shot higher. Walgreen Boots has agreed to sell Valeant's products at a discount at its drug stores. Valeant has been accused of price gouging. 3M cut its earnings outlook for this year, causing its stock to slide. Lumber Liquidators shares rebounding. Hedge fund manager Whitney Tilson, who had bet against the stock, reversed his stance and bought shares of the flooring retailer. In Europe, a rally in energy shares helped stocks bounce back from Monday's sharp decline.