NEW YORK — Strong earnings results and another round of corporate deals pushed stocks higher Wednesday. The Standard & Poor’s 500 index has now doubled from its intraday low set in the financial crisis.
Stocks extended gains after minutes from the Fed’s last policy meeting showed officials “continued to express disappointment in both the pace and the unevenness of the improvements in labor markets,” while also judging the recovery to be on “firmer footing.”
Policymakers raised projections for economic growth this year and made little change to forecasts after 2011 or for unemployment and inflation.
“The more optimistic view of the Federal Reserve is confirmed in part by the financial performance of major U.S. corporations,” said Richard Skaggs, senior equity strategist at Loomis Sayles in Boston. “Frankly, we’re encouraged to see the Fed take note of the improvement that is seen in some quarters.”
Family Dollar Stores rose 21 percent, to $53.25, after investor Nelson Peltz’s firm offered to pay up to $60 a share to take the discount retailer private. That was a 36 percent premium from Tuesday’s closing price. Family Dollar rose the most of any stock in the Standard & Poor’s 500.
Genzyme rose 1.1 percent after French drugmaker Sanofi- Aventis agreed to buy the U.S. biotechnology firm for $20 billion in cash. The deal ended months of haggling between the two companies.
Dell rose 12 percent a day after the personal-computer maker raised its full-year revenue forecast, a sign that businesses are spending more on technology.
Abercrombie & Fitch rose 7.6 percent after the teen-clothing maker said its fourth-quarter net income nearly doubled on strong sales overseas and better U.S. results.
The Commerce Department reported that new-home construction rose in January by the largest amount in 20 months. The pace of construction is still way off from levels seen in a healthy economy, but analysts were optimistic about the report.
“Housing is slowly showing some signs of life here,” said Ryan Detrick, senior technical strategist at Schaeffer’s Investment Research.
The Labor Department also reported that wholesale prices rose sharply in January because of higher costs for gas and other goods.
Comcast also reported earnings that surpassed analysts’ expectations. Its stock rose 4 percent after more customers signed up for a combination of TV, high-speed Internet access and digital phone services.
The Dow Jones industrial average rose 61.53, or 0.5 percent, to close at 12,288.17, its highest close since June 13, 2008.
The S&P 500 rose 8.31, or 0.6 percent, to 1,336.32. That was double its intraday low of 666.79 reached March 6, 2009, at the height of the financial crisis. The Nasdaq composite rose 21.21, or 0.8 percent, to 2,825.56.
The yield on the 10-year Treasury note rose to 3.63 percent from 3.61 percent from late Tuesday.
