The US markets closed higher on Wednesday, with the S&P 500 extending record gains into a fifth session, as investors focused on earnings and an improved outlook for the economy. Investors have been encouraged by better-than-expected corporate earnings for the first quarter, although revenue growth has been weak. There were no major economic reports on the domestic front, although data on Chinese exports and German industrial output were encouraging. Meanwhile, Dallas Federal Reserve Bank president Richard Fisher stated that the Federal Reserve’s monetary policy has not created more jobs because Congress has not provided clarity on tax policy, regulations, federal spending and other issues. Fisher added that even though the economy appears to be improving, the stock market is at a record high and companies are cash-rich, there’s still a massive fog of uncertainty regarding taxes, federal spending, regulations and health care costs. Fisher reiterated that the Fed’s bond-buying policy has run its course in being able to stimulate the economy. He stated that he’d like the Fed to start tapering its purchases of mortgage-backed securities given the recovering housing market nationally.
The Dow Jones Industrial Average added 48.92 points or 0.32 percent at 15,105.10, the S&P 500 gained 6.73 points or 0.41 percent to 1,632.69 and the Nasdaq jumped 16.64 points or 0.49 percent to 3,413.27.
Indian ADRs closed mostly in green on Wednesday, HDFC Bank was up 0.53%, Tata Motors was up 0.39% and Wipro was up by 0.12%. On the flip side, ICICI Bank was down 0.13% and Infosys was down by 0.13%.
