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US stocks rally ahead of Fed meeting

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(Globalpost/GlobalPost)

US stocks Monday moved solidly higher in early trade, rallying after last week's losses and ahead of this week's US Federal Reserve policy meeting.

About 35 minutes into trade, the Dow Jones Industrial Average shot up 165.75 points (1.05 percent) to 15,921.11.

The broad-based S&P 500 advanced 16.16 (0.91 percent) to 1,791.48, while the tech-rich Nasdaq Composite Index rose 40.37 (1.01 percent) to 4,041.35.

Investors are looking ahead to a two-day meeting of the Federal Reserve's policy-making committee, which could see them decide to scale back the Fed's huge bond-buying program.

The S&P 500 fell 1.7 percent last week on profit taking and speculation over what the Fed will do.

Insurer AIG advanced 1.6 percent after announcing the sale of its aircraft leasing unit International Lease Finance Corp. to AerCap of the Netherlands for $5.4 billion. The deal marked the last major sale by AIG of non-core assets following a large bailout during the financial crisis.

Semiconductor company Avago Technologies jumped 8.8 percent after announcing a deal to acquire LSI Corp. for $6.6 billion. LSI rose 38.7 percent.

Dow component ExxonMobil rose 3.5 percent after Goldman Sachs upgraded the stock to "buy" from "neutral."

Sprint gained 1.4 percent following a report in the Wall Street Journal that it is considering a bid for rival T-Mobile. T-Mobile fell 3.8 percent.

Bond prices rose. The yield on the 10-year US Treasury dipped to 2.84 percent from 2.87 percent, while the 30-year declined to 3.85 percent from 3.87 percent. Bond prices and yields move inversely.

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http://www.globalpost.com/dispatch/news/afp/131216/us-stocks-rally-ahead-fed-meeting-0