Hints of the Fed raising interest rates cant derail three-day stock market rise -

Hints of the Fed raising interest rates cant derail three-day stock market rise -

Hints of the Fed raising interest rates cant derail three-day stock market rise

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NEW YORK The stock market rose for a third straight day Wednesday despite a report from the Federal Reserve that showed a growing chorus of central bank officials willing to raise interest rates sooner rather than later.

In the bond market, prices fell and yields rose as investors prepared themselves for higher interest rates.

The Dow Jones industrial average rose 59.54 points, or 0.4 percent, to 16,979.13. The Standard & Poors 500 index rose 4.91 points, or 0.3 percent, to 1,986.51, less than two points away from its late-July record close of 1,987.98.

The Nasdaq composite was mostly unchanged on the day, falling 1.03 points, less than 0.1 percent, to 4,526.48.

The majority of Fed policymakers believe the U.S. economy is improving enough that the bank should start considering how its going to start raising interest rates, according to minutes from the banks latest meeting.

The debate on when the Fed should raise interest rates, which have been near zero since 2008, has intensified in recent months as the central bank winds down its other economic stimulus.

The Fed has been winding down its bond-buying program since December and is expected to end it before the end of the year. Despite worries that the Feds exit might be a net negative for the market, stocks have remained resilient. The S&P 500 is up 7.5 percent this year.

Jonathan Corpina, a floor trader at the New York Stock Exchange with Meridian Equity Partners, said investors are prepared to see the Fed raise interest rates.

Weve been talking about raising interest rates for so long, I dont think the Fed is going to surprise anybody when they finally do it, Corpina said.

The Feds key short-term interest rate influences the prices of a huge array of investments, including Treasury bonds, other kinds of bonds and stocks. If the Fed were to raise interest rates, investors would demand higher yields on bonds.

The Fed minutes prompted some investors to sell bonds. The yield on the U.S. 10-year Treasury note rose to 2.43 percent from 2.40 percent the day before. Bond yields rise when prices fall.

Hints of the Fed raising interest rates cant derail three-day stock market rise -

Trading has been quiet this week as the summer winds down and with many traders on vacation. Tuesday was the third-slowest trading day of the year, and Wednesday was 12th-slowest day.

Benchmark U.S. crude for September delivery rose $1.59 to $96.07 a barrel New York. Oil rose after a report showed U.S. supplies dropped sharply last week as refineries kept busy.

In metals trading, gold fell $1.50 to $1,295.20 an ounce, silver rose 9 cents to $19.50 an ounce and copper rose nine cents to $3.18 a pound.

In individual stocks:

J.M. Smucker fell $1.03, or 1 percent, to $102.42. The food products company, which also owns coffee brands such as Folgers, cut its full-year sales outlook. The company also said higher coffee prices were impacting the companys profit margins.

PetSmart rose 82 cents, or 1 percent, to $70.52 after the company said it was exploring a sale. The pet supply retailer had been under pressure from activist investors to consider a deal or a major restructuring.

Hertz fell after the rental car company withdrew its full-year profit forecast, citing numerous operational challenges related to auto recalls and accounting irregularities. The stock fell $1.23, or 4 percent, to $30.33.


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