Stocks Climb as Traders Brace for Fed Update

By MarketsFOXBusiness

FOX Business: Capitalism Lives Here

U.S. equities climbed on Tuesday as traders looked past disappointing economic data and awaited the Federal Reserve's policy update due Wednesday.

Continue Reading Below

Today's Markets

According to preliminary calculations, the Dow Jones Industrial Average rose 27.5 points, or 0.16%, to 16808, the S&P 500 advanced 4.2 points, or 0.22%, to 1942 and the Nasdaq Composite climbed 16.1 points, or 0.37%, to 4337.

The markets appear to be shrugging off worries about the turmoil in Iraq, along with high oil prices. The Dow and S&P kicked off the week in the green for the ninth time in a row -- a phenomenon not seen since 1993.

The news flow was quiet as traders digested of a duo of important economic reports.

The Commerce Department said new housing starts fell 6.5% in May to an annualized rate of 1 million units, below the 1.03 million units expected. Permits for new-home construction fell 6.4% in the same month, to an annualized rate of 991,000 units, also missing Wall Street expectations for 1.05 million units.

Meanwhile, the Labor Department reports prices for consumer goods rose 0.4% in May from the month prior, the largest increase since February 2013, and more than the 0.2% increase Wall Street expected. Excluding the food and energy components, prices were up 0.3%, also above economists’ expectations of 0.2%, and the largest increase since August 2011.

The Federal Reserve also kicks off its two-day policy-setting meeting on the day. A statement from the central bank along with a press conference led by chair Janet Yellen are set for Tuesday.

Elsewhere, U.S. crude oil futures fell 51 cents, or 0.48%, to $106.40 a barrel. Wholesale New York Harbor gasoline fell 0.06% to $3.071 a gallon. Gold slumped $9.60, or 0.74%, to $1,266 a troy ounce.

What do you think?

Click the button below to comment on this article.