* Apple, Exxon Mobil at new multi-year highs
* S&P; index just 6 percent away from all-time closing high
* Shares of Staples up on possible buyout offers
* Indexes up: Dow 0.2 pct, S&P; 0.3 pct, Nasdaq 0.9 pct
By Aleksandra Michalska
NEW YORK, Sept 14 (Reuters) – U.S. stocks pared gains but
were up for the fourth straight day on Friday on the Federal
Reserve’s aggressive new plan to stimulate the economy.
Apple Inc and Exxon Mobil, the two largest
U.S. companies by market value, reached new highs, and the
small-cap Russell 2000 index hit a record peak.
Equities are in the midst of a run-up in which the S&P; 500
has posted gains for four consecutive months, fueled by the
actions of Europe’s and the United States’ central banks to keep
interest rates low and stimulate their struggling economies.
The Fed’s announcement Thursday that it would keep up its
aggressive bond-buying until the labor market improved was
unprecedented. It boosted the benchmark S&P; 500 index to its
highest close since December 2007.
“The Fed did something that is open-ended. It goes a long to
help people feel a little bit more confident,” said Warren West,
principal at Greentree Brokerage Services.
The Dow Jones industrial average was up 28.73 points,
or 0.21 percent, at 13,568.59. The Standard & Poor’s 500 Index
was up 4.90 points, or 0.34 percent, at 1,464.89. The
Nasdaq Composite Index was up 29.71 points, or 0.94
percent, at 3,185.53.
Bank of America-Merrill Lynch on Friday initiated a 2013
target of 1,600 for the S&P; 500, a level that would represent a
new high for the benchmark index.
The target “implies a 10 percent price return, where most of
the appreciation can be attributed to earnings growth of 7
percent next year,” wrote Savita Subramanian, head of U.S.
Equity and Quantitative Strategy.
The Fed move pushed the dollar down 0.5 percent
against other major currencies, boosting some commodities. Miner
Freeport-McMoran Copper & Gold Inc rose 3.7 percent to
$42.32 and aluminum company Alcoa Inc advanced 2.6
percent to $9.88. The PHLX Gold/Silver Index climbed 3.2
percent to its highest since early March.
Data on retail sales and industrial production pointed to
modest economic growth in the third quarter. The
Thomson Reuters/University of Michigan’s preliminary September
consumer sentiment index rose to its highest level in four
months as Americans were more upbeat about their economic and
job prospects.
S&P; Dow Jones Indices said UnitedHealth Group Inc
will replace Kraft Foods Inc in the Dow Jones industrial
average after the close of trading Sept. 21. UnitedHealth shares
rose 0.09 percent to $53.94 and Kraft slipped 0.5 percent to
$39.93.
Home Depot, the world’s largest home improvement
chain, was up 2.3 percent to $59.67 after the company announced
it will close all seven of its big box stores and cut 850 jobs
in China.
Shares of Staples were up 3.3 percent to $12.35
after Fortune magazine reported that several private equity
firms, including Bain Capital, are considering a buyout offer
for the retailer.
