By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market marched higher
on Tuesday, as investors pushed prices up ahead of the Federal
Reserve's two-day policy meeting.
The Federal Reserve officials are widely expected to announce
the end to the bond-buying stimulus program, while leaving the
language on the statement broadly dovish. That generally means the
central bank would be quick to signal a prolonged period of low
rates, if the economy got dicey.
The S&P 500 rose (SPX), with all ten main sectors trading in
positive territory.
The Dow Jones Industrial Average jumped (DJI), helped by a big
advance in its biggest component Visa Inc.
The Nasdaq Composite outperformed the main benchmark rising
significantly higher (RIXF)
Read: What to make of this roller-coaster stock market
Throw 'em a bone: "Markets are trading into the [Federal Open
Market Committee] statement later this week, expecting an end to
quantitating easing, but dovish wording (they basically expect the
FOMC to throw them a bone)," said Wouter Sturkenboom, strategist at
Russell Investments in London, in emailed comments.
A decision after the two-day FOMC meeting comes Wednesday.
Investors did not dwells on mixed bag of economic reports,
giving them a broad pass. U.S. consumers have regained confidence
in the short-term outlook for the economy and labor market, and are
more optimistic about their future earnings potential, according to
the latest data from the Conference Board.
Orders for U.S. durable goods fell in September for the second
month in a row as demand waned for a variety of products including
autos, aircraft, computers and heavy machinery. The up-and-down
airline category was a chief culprit, with orders sinking 16.1%
after a 74% drop in August and a whopping 315% spike in July. Read:
Businesses step up investment. Will it last?
U.S. home prices nudged up by less than forecast in August,
according to S&P/Case-Shiller's 20-city composite index
released Tuesday.
Stocks to watch:
Whirlpool Corp. (WHR) shares fell after earnings per share
missed expectations.
Kohl's shares slid after it warned its full-year results will
come in at the low end of its previously issued guidance.
AutoNation Inc. shares rallied after it reported third-quarter
results that topped expectations.
Twitter Inc.(TWTR) was hit by downgrades from several analysts
on Tuesday, leading shares to drop sharply. The social-media
company disappointed investors after its fourth-quarter revenue
forecast came slightly under analysts' expectations, and growth in
new users slowed in the third quarter. Read a live-blog recap
Apple Inc.(AAPL) shares rose after Alibaba Group Holding Ltd.'s
(BABA) chief executive officer Jack Ma said he was interested in
cooperating with the iPhone maker on financial payments. Ma was
speaking during an interview at the WSJD Liveglobal technology
conference in California late Monday.
Also at that conference, Apple CEO Tim Cook played down reports
of retailers such as Rite Aid Corp.(RAD) not accepting Apple Pay at
stores. He said more than one million cards were activated on Apple
Pay within 72 hours of its debut last week, making it the largest
mobile-payment offering.
Madison Square Garden Co.(MSGNV) shares jumped after the company
said late Monday that it was exploring the possibility of splitting
into two publicly traded companies to unlock value in its sports
franchises.
Facebook Inc.(FB) will report later Tuesday.
(Read more about the day's notable stocks in Movers &
Shakers column:
http://www.marketwatch.com/story/facebook-coach-pfizer-earnings-in-focus-2014-10-28.)
Other markets: European stocks were on the rebound Tuesday, with
the German DAX 30 index up 1.5%. Stocks in China surged, with the
Hong Kong Hang Seng Index up 1.6%. Oil prices (CLZ4) were taking a
breather after a sharp drop on Monday. Gold prices (GCZ4) were
lackluster, as was the dollar (DXY).
Subscribe to WSJ: http://online.wsj.com?mod=djnwires