US stocks higher as Fed considers larger balance sheet
U.S. stocks traded higher Friday on expectations the Fed is willing to tolerate a much larger balance sheet of $3.5 trillion.
That’s well above previous estimates of $1.5 trillion to $3 trillion, and is easing worries that shrinking the balance sheet through quantitative tapering would drain too much liquidity and tip the economy into recession.
Upbeat earnings reports are also helping life equities which have recently been hit by worries about global economic growth, U.S. government shutdown and uncertainty around U.S.-China trade talks.
Starbucks shares rose as the popularity of its holiday-themed drinks in the United States helped quarterly sales top analysts' expectations.
Shares of Western Digital jumped after the company said its revenue would improve in the second half of the year. The company’s quarterly results fell short of expectations.
Intel's current-quarter forecast disappointed as it blamed slowdown in China and sluggish demand for its data center and modem chips, which sent shares down.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SBUX | STARBUCKS CORP. | 92.99 | -0.29 | -0.31% |
| WDC | WESTERN DIGITAL CORP. | 221.51 | -0.59 | -0.27% |
| INTC | INTEL CORP. | 46.99 | -1.31 | -2.72% |
In Asian markets on Friday, China’s Shanghai Composite gained 0.4 percent for the session.
Hong Kong’s Hang Seng added 0.4 percent.
Japan’s Nikkei average dipped less than 0.1 percent at the close.
In European trading, London’s FTSE added 0.1 percent, Germany’s DAX gained 1.6 percent and France’s CAC rose 1.2 percent.
U.S. stocks closed mixed Thursday after trading cautiously all session, as investors digested strong earnings but worried about prospects for global growth.
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Xilinx and Lam Research reported better-than-expected quarterly results.
Texas Instruments fell short in its quarterly revenue estimates, but beat on profit, giving shares a boost.