Markets finished near multi-year highs. Ken Meyers has your stock market report on the Acadiana Business Index.

  • The S&P 500 Index closed at its highest price since 2007 as it advanced 23 points to 1459. The Dow gained 206 points to 13539 and the NASDAQ increased 41 points 3155.
  • The Fed’s announcement of a new round of quantitative easing prompted a broad market rally. The central bank said it will buy $40 billion of mortgage debt per month and continue to purchase assets until the jobs outlook improves. Policy makers also pushed out expectations for a hike in short-term rates to 2015 and lowered their 2012 growth forecasts.
  • Action by the Fed overshadowed a disappointing jobs report. Initial jobless claims rose by the most since mid-July as claims increased 15,000 to 382,000.
  • In addition, the producer price index climbed higher in August by the most in more than three years with the gauge increasing 1.7%.
  • Overall, a return to the risk-trade pushed all sectors higher. Material stocks were the best performing group with Alcoa up 28 cents to $9.35 and Freeport-McMoRan advanced $1.69 to $41.10. Financials also staged a rally as Bank of America increased 43 cents to $8.97 and Citigroup gained $1.40 to $33.05.
  • NYSE Composite volume totaled over 4.4 billion shares. The NYSE was 11-3 positive on issues and 10-1 positive on volume. Advancers beat decliners on the NASDAQ by 8-3 on issues and by 4-1 on volume.
  • In fixed-income, Treasuries were mixed despite a solid 30-year bond auction. The 10-year note was up 6/32 to yield 1.74% and the 30-year bond lost 11/32 to yield 2.94%.

For the complete report, click Ken's Market Report.