US stocks closed higher overnight after the Federal Reserve decided to keep interest rates at historical lows near zero per cent and said the economy is finally starting to show signs of a recovery.
In its policy statement the U.S. central bank said it will maintain these low rates for some time to come, saying that although economic activity remained weak it appeared to be leveling out.
The Dow Jones industrial average up 120 points to 9,362. The S&P500 Index gained 11 to 1006 and the NASDAQ rose 29 points to 1,999.
In economic news: The National Association of Realtors reports that the median house price dropped 15.6 per cent during the second quarter compared to the same quarter last year. However the median house price rose 4 per cent compared to the first quarter.
The Commerce Department reports that the trade gap widened to $27 billion in June compared to a deficit of $26 billion in May.
In company news: Chipmaker Applied Materials Inc (NASDAQ:AMAT) rose 3.33 per cent to $13.66. The company reported a loss for the third quarter on weaker revenue, compared to a profit for the same period the year before. However the result was better than analysts had predicted, with the company saying that it will at least break even in the fourth quarter and may even post a profit.
Shares in Emergency Medical Services Corp (NYSE:EMS) added 0.38 per cent to $42.76. Private equity firm Onex has offloaded part of its holding in the company. Onex sold 3.5 million shares for around $137 million which, according to Reuters, is about six times more than it originally paid for the stock four years ago.
Homebuilder Toll Brothers Inc (NYSE:TOL) shares rose 14.36 per cent to $23.42. CNN Money reports the company saying that the number of contracts signed rose in the quarter for the first time in four years. Toll Brothers also said that the number of cancelled contracts fell compared to the same period a year ago.
And shares in diversified manufacturer Terex Corp (NYSE:TEX) advanced 4.07 per cent to $16.10. The company has announced the U.S. securities regulators have agreed to the company’s offer to pay an $8 million civil penalty to settle fraud charges. According to Reuters regulators in the U.S. alleged that Terex aided and abetted a fraudulent accounting scheme at customer United Rentals.
Now to the best and worst performers of the NASDAQ Top 100: The best performer was Wynn Resorts rising 7.36 per cent to $59.52. While Flir Systems and Lam Research also rose. On the downside, Garmin lost the most ground falling 3.64 per cent to $31.27. While Dish Network and Hansen Natural also closed lower.
