By Kate Gibson
U.S. stocks and commodities furthered their climb Tuesday after
Standard & Poor's affirmed Greece's credit rating and as
investors looked to the Federal Reserve's interest-rate decision in
the afternoon.
The dollar weakened more against the euro after S&P opted
not to downgrade Greece, a step the rating agency last month warned
was under consideration.
"Greece is no longer facing the threat of an imminent
downgrade," said analysts at Action Economics.
While the Fed is widely expected to keep its target rate for
overnight loans at between zero and 0.25%, the central bank's
accompanying policy statement will be analyzed for clues as to the
timing of future rate-hike moves.
"Nearly everyone expects the Fed to leave the policy rate
unchanged. But the language used when communicating this decision
is pretty important," said Kevin Giddis, head of fixed income at
Morgan Keegan, of the statement slated for release at 2:15 p.m.
Eastern.
Extending gains into a sixth day, the Dow Jones Industrial
Average (DJI) was lately up 26.75 points at 10,670.9, with 20 of
its 30 components in the green, including aluminum producer Aloca
Inc. (AA), up 1.2%.
On the New York Stock Exchange, nearly three stocks advanced for
every issue on the decline.
A day after finishing at a 17-month high, the S&P 500 Index
(SPX) added 5.87 points, or 0.5%, to 1,156.38, with
natural-resource companies leading the gains.
The Nasdaq Composite Index (RIXF) also rose, up 10.86 points, or
0.5%, to 2,373.07.
Ahead of Tuesday's open, the Commerce Department reported
new-home construction fell 5.9% to a seasonally adjusted annual
rate of 575,000. The January count was revised up to a pace of
622,000 units.
In a separate report, the Labor Department said the price of
imports declined 0.3% in February, the first drop in seven
months.
A standout among retailers was Limited Brands Inc. (LTD), shares
of which rose 4.6%. The company declared a special dividend of $1 a
share and said it would repurchase up to $200 million in stock.
The dollar's slide against the euro and other major currencies
boosted commodities including gold and oil, making them less costly
to foreign buyers. and
Shares of natural-resource companies also rose, with Cliffs
Natural Resources Inc. (CLF) up 5.5% and Newmont Mining Corp. (NEM)
gaining 3.1%.