Strong earnings and the Fed statement sent the major indexes to record highs. The central bank kept rates unchanged. Fred Katayama reports.
Stocks added to their earlier gains after the Fed statement came out Wednesday afternoon, and strong earnings sent the big indexes to record highs. The Federal Reserve kept interest rates steady and said it expects to begin winding down its massive bond portfolio "relatively soon." Fiduciary Trust equity management director Carin Pai weighs in on the Fed statement: SOUNDBITE: CARIN PAI, EQUITY MANAGEMENT DIRECTOR, FIDUCIARY TRUST, (ENGLISH) SAYING: "The markets like an accommodative monetary policy. I think markets like the fact that we are operating in sort of this Goldilocks scenario where rates are low and the Fed's going to raise rates gradually so that's not going to be a surprise for equity markets, and meanwhile, we're in an environment where we're seeing strong corporate fundamentals, good economic gains." After the markets closed, Facebook rose. Rising quarterly profit and revenue crushed estimates. Leading the Dow higher: Boeing. Shares soared to all-time highs after the aerospace giant swung to a profit, posted strong cash flow, and lifted its full-year earnings forecast. Advanced Micro Devices shares jumped. The chipmaker raised its full-year revenue outlook. New home sales rose in June. But the past three month's sales pace were downwardly revised, suggesting the housing market is treading water. European shares closed higher, boosted by strong earnings reports from energy firms and automakers.