S&P 500 Posts Weekly Rise On Fed Speculation | Lu Wang

Aug. 24, 2013 (Bloomberg) -- The Standard & Poor’s 500 Index had its first weekly gain since Aug. 2 as investors weighed minutes of the Federal Reserve’s July meeting and economic data to gauge the prospect of monetary stimulus.

Microsoft Corp. rallied 9.3 percent as the world’s largest software maker said Chief Executive Officer Steve Ballmer will retire. Best Buy Co. jumped 16 percent after posting its biggest quarterly profit in more than two years. Hewlett-Packard Co., Abercrombie & Fitch Co. and Staples Inc. plunged more than 15 percent as earnings forecasts disappointed investors. Homebuilders slid 2.2 percent as a group as purchases of new U.S. homes plunged.

The S&P 500 added 0.5 percent to 1,663.5 for the five days, the first gain after two weeks of losses. The Dow Jones Industrial Average fell 70.96 points, or 0.5 percent, to 15,010.51. The 30-stock gauge declined for a third week, the longest retreat since November.

Almost all Fed policy makers agreed with plans to reduce the pace of monthly bond purchases if the economy continues to improve in line with forecasts, according to the central bank’s minutes released Aug. 21.

Despite the consensus shown in the Fed minutes, three central bank presidents speaking later in the week during the annual conference in Jackson Hole Wyoming, differed over the timing for easing stimulus. One backed a tapering next month if the economy remains strong and two others said policy makers should take time to assess economic data.

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