October 20th, 2010
06:08 PM ET

Stocks keep rising ahead of Fed's next big move

A look at the day's headlines in business news:

Dow holds triple-digit gains

Stocks rebounded to end sharply higher Wednesday, following the worst session in more than two months.

Investors digested a mixed batch of financial results and shrugged off a tepid report on regional economic conditions.

The Dow Jones industrial average added 129 points, or 1.2 percent, to end at 11,107.97. The S&P 500 gained 12 points, or 1.1 percent, to close at 11,178.17, and the Nasdaq rose 20 points, or 0.8 percent, to settle at 2,457.39.

Gains were broad-based in the recovery from Tuesday's rout, with 27 of the 30 blue-chip Dow components ending higher. Airline stocks received a boost following Boeing's upbeat earnings, but financial shares lagged on mixed reports from big banks.

Treasury yields steady after Fed's Beige Book

Treasury prices ended the session flat Wednesday as investors continued to anticipate action from the Federal Reserve to boost the struggling economy.

Yields for the benchmark 10-year note held steady at 2.48 percent. The 2-year and 5-year note yields were also unchanged, while the yield on the 30-year bond dipped slightly to 3.89 percent from 3.9 percent Tuesday.

Treasury prices got a lift Tuesday, as China's surprise rate hike and mixed corporate news fueled investors' flight to safety within U.S. government debt, triggering deep losses in the stock market.

– CNNMoney.com reporters Julianne Pepitone and Hibah Yousuf contributed to this report.

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Filed under: Economy
soundoff (4 Responses)
  1. WhiteKong78

    Ok so where's the jobs to match these great reports? Oh yeah that's right they went to China to boost profits and therefore stock prices.

    October 20, 2010 at 6:55 pm | Report abuse |
  2. mary adkins

    I could be encouraged by this news if the actual economy would improve! It seems corporations are increasing profits by cutting back on jobs! In a consumer driven economy is this really wise? Only when people A. Have jobs + B.feel their jobs are secure will they start spending.

    October 20, 2010 at 8:09 pm | Report abuse |
  3. phil

    And still to this very day, both (D) and (R) leaders steadfastly refuse to allow US to audit the federal reserve.

    October 20, 2010 at 8:21 pm | Report abuse |
  4. duke

    The jobs are being held hostage by corporate,
    Who want more tax breaks never mind the fact that the salary gap gets greater by the year.
    A vote for the GOP is a vote against yourself!!

    October 20, 2010 at 11:26 pm | Report abuse |