Tech companies help US stocks rise again
US stocks have risen for the fifth consecutive day as investors went on a late buying spree.
The gains came after news that the US Federal Reserve plans to start reducing its huge portfolio of bonds.
The Standard & Poor's 500 index closed at a record high.
Stocks were slightly higher for most of the day as the market kept chipping away at the losses it suffered one week before.
Technology companies such as TurboTax maker Intuit and materials companies including industrial gas company Praxair made some of the biggest gains.
In the afternoon, the Federal Reserve released the minutes from its latest meeting.
Officials discussed steps for shrinking the central bank's 4.5 trillion dollars in bond holdings and Wall Street liked what it saw.
The Fed bought huge amounts of bonds during the global economic crisis in an effort to stimulate the economy.
When the Fed suggested in April that it was considering reducing its portfolio, investors were unnerved.
But when investors saw some details of how the plan might look, they were pleased.
"They're going to do it in a very careful, slow and, at least by Fed standards, transparent method," said Ed Keon, a portfolio manager at QMA, a fund manager owned by Prudential Financial.
"They're not going to do it in a way that runs the risk of shocking the market."
The Standard & Poor's 500 index picked up 5.97 points, or 0.2%, to 2,404.39.
The Dow Jones industrial average gained 74.51 points, or 0.4%, to 21,012.42.
The Nasdaq composite rose 24.31 points, or 0.4%, to 6,163.02.
The Russell 2000 index of small-company stocks added 1.53 points, or 0.1%, to 1,382.51.
In the wake of the Fed's disclosure, bond prices turned higher.
The yield on the 10-year Treasury note fell to 2.25% from 2.28%.
High-dividend stocks including utility companies and real estate investment trusts climbed as investors looked for yield.
NRG Energy jumped 88 cents, or 5.5%, to 16.76 dollars and Simon Property Group gained 2.53 dollars, or 1.6%, to 159.78 dollars.
Industrial gas company Praxair rose after it agreed to terms with Germany's Linde.
The companies said they would combine in an all-stock deal in December, part of a wave of consolidation in the chemical and materials industries.
Praxair picked up 2.30 dollars, or 1.8%, to 132.27 dollars. Linde's German stock rose 2.8%.
Dow Chemical and DuPont, which are also planning to combine, rose as well.
Dow picked up 67 cents, or 1.1%, to 61.45 dollars and DuPont advanced 1.04 dollars, or 1.3%, to 78.38 dollars.
Accounting software maker Intuit had a stronger quarter than investors expected and Wall Street was also pleased with its forecasts.
Its stock gained 8.68 dollars, or 6.7%, to 137.83 dollars.
Other technology firms once again rallied.
Hard drive maker Western Digital added 1.67 dollars, or 1.9%, to 89.70 dollars and chipmaker Nvidia rose 1.54 dollars, or 1.1%, to 138.57 dollars.
General Electric slumped after chief executive Jeffrey Immelt addressed an industry conference.
Mr Immelt suggested it will be tough for the company to reach the earnings targets some investors want to see.
The stock fell 45 cents, or 1.6%, to 27.83 dollars.
GE, which is seen as a bellwether for many different industries, has been trading at its lowest price in a year-and-a-half.
Benchmark US crude lost 11 cents to settle at 51.36 dollars per barrel in New York while Brent crude, used to price international oils, sank 19 cents to 53.96 dollars a barrel in London.
Oil prices have rallied lately as members of the Opec cartel and other countries prepare to meet and discuss production.
Those nations are expected to extend last year's production cut in a concerted attempt to prevent oil prices from falling.
Wholesale gasoline gave up one cent to 1.65 dollars a gallon. Heating oil remained at 1.61 dollars a gallon. Natural gas lost one cent to 3.21 dollars per 1,000 cubic feet.
Gold fell 2.40 dollars to 1,253.10 dollars an ounce. Silver lost two cents to 17.12 dollars an ounce. Copper fell one cent to 2.58 dollars a pound.
The dollar rose to 111.90 yen from 111.76 yen. The euro edged up to 1.1195 dollars from 1.1185 dollars.
The FTSE 100 Index in Britain was up 0.3% and Germany's DAX fell 0.2%.
The CAC 40 in France was 0.2% lower.
The Hang Seng in Hong Kong finished unchanged after Moody's downgraded the Chinese government's credit rating.
The firm said it expects China's financial strength to erode as debt rises, but its rating for the country is still relatively high.
Tokyo's Nikkei 225 rose 0.7%. The Kospi in South Korea gained 0.2%.