Dow closes at record as Fed keeps cutting stimulus - 13 WTHR Indianapolis

Dow closes at record as Fed keeps cutting stimulus

Updated:
NEW YORK - The Dow Jones industrial average closed at an all-time high Wednesday as the good narrowly outweighed the bad for the stock market.

After investors took in some solid U.S. company earnings, the latest move from the Federal Reserve and a report of unexpectedly weak economic growth in the first quarter, the stock market managed its third straight day of gains.

The Dow Jones industrial average rose 45.47 points, or 0.3 percent, to 16,580.84, four points above its previous record set on Dec. 31. It was the first day the index closed in positive territory for the year.

The Standard & Poor's 500 index rose 5.62 points, or 0.3 percent, to 1,883.95. The Nasdaq composite rose 11.01 points, or 0.3 percent, to 4,114.56.

Some solid earnings reports and corporate deal news helped offset a weak economic report, and by midday stocks had eked out small gains. Stocks then climbed higher in afternoon trading after the Federal Reserve's statement following its April policy meeting was in line with investor's expectations.

The Fed said it would reduce its monthly bond purchases by another $10 billion to $45 billion. The stimulus is intended to hold down long-term interest rates and support the mortgage market. The Fed also reaffirmed its plan to keep short-term interest rates low to support the economy "for a considerable time" after its bond purchases end, likely late this year.

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