Dow Index Jumps Triple Digits as Wall Street Eyes Fed Meeting
New York (Dec 12) US markets traded mixed Tuesday, Dec. 12, but the Dow Jones Industrial Average jumped triple digits as the Federal Reserve kicked off its two-day policy meeting in Washington amid a backdrop of robust global growth and tepid inflation, a mix that has helped boost markets around the world to a series of record highs.
The Dow Jones Industrial Average rose 105 points, or 0.42%, trading above its closing record high. The S&P 500 rose 0.16%, also hitting a record high, while the Nasdaq slipped 0.05%.
Telecom companies were showing strength with Verizon Communications Inc. (VZ - Get Report) rising more than 2%. Verizon received an analyst upgrade from Instinet after announcing it reached a new, five-year agreement to stream NFL games.
Financials were also performing well while the energy and tech sectors lagged on Tuesday.
Stocks got a boost after U.S. producer prices rose 0.4% in November, according to the Bureau of Labor Statistics. Core prices, which strip out food, energy and trade, also rose 0.4%. The data reinforces the belief the Fed will raise rates for the third time this year on Wednesday, Dec. 13.
Shares of Walt Disney Co. (DIS - Get Report) were rising 0.25% after rival Comcast Corp. (CMCSA - Get Report) announced that it was no longer pursuing the purchase of entertainment assets from Twenty-First Century Fox Inc. (FOXA - Get Report) .
"When a set of assets like Twenty-First Century Fox's becomes available, it's our responsibility to evaluate if there's a strategic fit that could benefit our company and our shareholders," Comcast said in a statement. "That's what we tried to do and we are no longer engaged in the review of those assets. We never got the level of engagement needed to make a definitive offer."
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