S&P 500 Climbs Toward Record After 3-Day Rally on Fed.

http://www.bloomberg.com/news/2014-12-22/u-s-index-futures-gain-amid-oil-rise-signaling-s-p-500-advance.html

U.S. stocks climbed, after the biggest three-day jump since 2011, amid investor optimism that the Federal Reserve will continue to support the economy.

The Standard & Poor’s 500Index added 0.1 percent to 2,073.27 at 9:33 a.m. in New York, climbing toward a record close of 2,075.37 reached Dec. 5. The Dow Jones Industrial Average jumped 87.46 points, or 0.5 percent, to 17,892.26.

“It’s all about a continuation of the strength last week from Chair Yellen’s comments and the huge rally we had starting last Wednesday morning,”Michael James, a Los Angeles-based managing director of equity trading at Wedbush Securities Inc., said in a phone interview. “If anything, you’re likely to see more impetus to show more equity positions and less cash going into year end, and you’re likely to see short positions drawn down.”

U.S. equities jumped 5 percent in the past three sessions as Fed Chair Janet Yellen said the central bank will likely hold key rates near zero at least through the first quarter, even as the U.S. economy strengthens.

The gauge erased its loss for the month and closed 5 points below a record of 2,075.37 reached Dec. 5. The S&P 500 has advanced in each of the past six Decembers.

A slide in oil prices and a worsening of the financial crisis in Russia rippled through financial markets earlier this month, wiping more than $1 trillion from U.S. equity values in less than two weeks. The S&P 500 lost 5 percent in seven trading days through Dec. 16.

Fifth Recovery

Equities rallied around the world after the central bank said it will be patient on the timing of a rate increase. Yellen said any spillover from the situation in Russia is likely to be small.

The benchmark index is points away from completing the fifth recovery this year from a decline of 4 percent or more, just 17 days after it started. In comparable drops beginning in January, April, July and September, the S&P 500 needed about a month to erase losses, data compiled by Bloomberg show.

U.S. stocks have tripled during the 5 1/2-year bull market, driven by the Fed’s three rounds of bond buying and borrowing costs near zero to stimulate the economy.

Data today will show existing-home sales in the U.S. slipped to 5.20 million in November from 5.26 million in October, according to economists’ forecasts.

U.S. equities jumped 5 percent in the past three sessions as Fed Chair Janet Yellen said the central bank will likely hold key rates near zero at least through the first quarter, even as the U.S. economy strengthens.