US stocks rise ahead of big Fed meeting
US stocks Tuesday moved higher as Federal Reserve policymakers headed into a meeting to weigh whether to begin reducing their huge stimulus program.
About 40 minutes into trade, the Dow Jones Industrial Average added 50.73 (0.33 percent) at 15,545.51.
The broad-based S&P 500 rose 5.46 (0.32 percent) to 1,703.06, while the tech-rich Nasdaq Composite Index tacked on 13.20 (0.35 percent) to 3,731.04.
Patrick O'Hare of Briefing.com said markets would be in a wait-and-see mode until the Fed releases its policy statement at the end of the two-day meeting.
The Federal Open Market Committee could trim back the Fed's $85 billion per-month bond-buying program.
US consumer prices rose a bare 0.1 percent in August. Price gains at the consumer level stood at 1.5 percent year-on-year, well below the levels the Fed has pointed to as thresholds for tightening monetary policy.
Dow component Microsoft gained 0.7 percent after raising its dividend by 22 percent and announcing a new $40 billion share buyback program to replace a program that expires at the end of September.
Banking giant JPMorgan Chase edged 0.2 percent higher following reports it is near a settlement to pay some $800 million related to the giant London whale trading loss.
The Mosaic Company, a fertilizer producer, dipped 1.2 percent after trimming its price and output guidance due to low demand.
Internet radio company Pandora fell 1.8 percent after announcing a public offering of 10 million additional shares. The funds raised will go to general corporate purposes and potential acquisitions.
Huntsman Corp., which sells chemical products, increased 4.2 percent after announcing a $1.1 billion purchase of a performance additives and titanium dioxide business from Rockwood Holdings.
Bond prices rose. The yield on the 10-year Treasury dropped to 2.85 percent from 2.87 percent, while the 30-year slipped to 3.86 percent from 3.87 percent. Prices and yields move inversely.