Stock Market Closes at Highest Level of 2016 After Interest

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Stock Market Closes at 2016 High After Yellen News
(NEW YORK) -- Stocks closed at their highest level of the year Tuesday as investors welcomed the
latest signal from the Federal Reserve that it will move slowly to raise interest rates. Big names
including Apple and Microsoft led technology stocks higher as the market made its biggest gain in
two weeks.
Stocks rose after Yellen confirmed that the Fed isn't in a hurry to raise interest rates. The Fed made
similar points just two weeks ago, but since then, some members of the Fed's decision making
committee had said they thought it was time for rates to go higher. Yellen's remarks boosted all
corners of the market, and the price of gold rose along with stocks. Bond prices also rose and yields
sank.
"A little bit of self-doubt started to enter the trading public's mind," said Sam Stovall, U.S. equity
strategist for S&P Capital IQ. "She reassured investors."

The Dow Jones industrial average rose 97.72

points, or 0.6 percent, to 17,633.11. The Standard
& Poor's 500 index gained 17.96 points, or 0.9
percent, to 2,055.01 Aided by the gains in tech
stocks and in small cap stocks, the Nasdaq
composite index climbed 79.84 points, or 1.7
percent, to 4,846.62.
Stocks were trading slightly lower before Yellen's
remarks, but they moved higher after the text of her comments was released. The price of gold
climbed while bond yields fell and the dollar weakened. The yield on the 10-year U.S. Treasury note
slid to 1.80 percent from 1.89 percent. The euro rose to $1.1295 from $1.1200. The dollar slipped to
112.75 yen from 113.28 yen. Gold rose $15.70, or 1.3 percent, to $1,235.80 an ounce.
Apple climbed $2.51, or 2.4 percent, to $107.70 after the FBI dropped its legal efforts to force Apple
to break into the iPhone used by Syed Farook, who along with his wife killed 14 people in San
Bernadino, California, in December. The FBI said it was able to hack into the phone, and asked a
court to vacate an order forcing Apple to help. Apple had been fighting the government's efforts and
said it will continue trying to make its products more secure.
Microsoft added $1.17, or 2.2 percent, to $54.71. Information technology company SAIC advanced
$5.33, or 11.5 percent, to $51.88 after its fourth-quarter profit was far larger than analysts
expected.
Utility and telecommunications stocks, which pay hefty dividends similar to bonds, also traded
higher.
Financial stocks made only small gains and lagged the market. They are able to charge more money

on lending when interest rates are higher, so the Fed's low-rate policy has hurt the sector. So has
the weakening price of oil, because investors are worried that loans to energy companies won't be
repaid.
Bank of America fell 20 cents, or 1.5 percent, to $13.42 and Wells Fargo lost 65 cents, or 1.3
percent, to $48.05.
In her remarks to the Economic Club of New York, Yellen said the Fed expects to move slowly
because the U.S. economy and financial conditions have weakened over the last few months, and
global pressures could harm the U.S. economy. Those concerns include the possibility of a broad
economic slump, lower oil prices, and the shaky stock market.
The Fed cited similar reasons earlier this month, when it said it expected to raise rates twice this
year, not four times.
Benchmark U.S. crude dropped $1.11, or 2.8 percent, to $38.28 a barrel in New York. Brent crude,
used to price international oils, lost $1.13, or 2.8 percent, to $39.14 a barrel in London.
Home building companies rose after Lennar reported strong quarterly results, selling more homes at
higher prices. Its stock gained $1.48, or 3.2 percent, to $48.18. Competitor D.R. Horton rose 90
cents, or 3 percent, to $30.72 and PulteGroup added 39 cents, or 2.2 percent, to $18.51.
Drugmaker Medivation fell after a group of legislators took aim at the company over the price of its
prostate cancer treatment Xtandi. They urged federal agencies to cut the price of Xtandi and asked
for public hearings. Xtandi is Medivation's only approved drug, and its average list price is about
$129,000 a year. Sales topped $1 billion last year. Medivation stock shed $2.50, or 6.1 percent, to
$38.75.
Retailer Conn's skidded $3.84, or 24.5 percent, to $11.81 after its quarterly profit came up short of
estimates and its 2016 forecasts disappointed investors.
In other commodities trading, heating oil fell two cents to $1.16 a gallon. Natural gas rose 3 percent
to $1.90 per 1,000 cubic feet. Silver picked up 4 cents to $15.23 an ounce. Copper prices slumped 3
cents, or 1.4 percent, to $2.21 a pound.
Overseas markets were mixed. France's CAC 40 added 0.9 percent and Germany's DAX picked up
0.4 percent. The FTSE 100 index of leading British shares was little changed. Japan's benchmark
Nikkei 225 lost 0.2 percent and South Korea's Kospi added 0.6 percent. Hong Kong's Hang Seng
gained 0.1 percent.
http://time.com/4275626/stock-market-record-year-high/