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Market Update

S&P 500 and World Markets Advance as Fed Policy Makers Meet

Author: Nichole Harper
Last Update: 4:38 PM ET September 16 2015

4:30 PM New York City, New York – U.S. stocks rallied and the S&P 500 index jumped 0.9% after the Federal Reserve started its much anticipated 2-day policy meeting. Markets in Europe also advanced more than 1%. U.S. dollar held firm and crude oil jumped 6%.

Stocks on Wall Street rose and three widely followed indexes increased at least 0.6% after the Federal Reserve kicked off its much awaited 2-day policy meeting reviewing the economy and interest rate direction.

Investors digested the latest report on inflation and prices declined largely on the continued fall in fuel prices at pump stations and strong dollar.

The index of consumer prices in August decreased 0.1% from July. For the year all item index before seasonal adjustment increased 0.2%, Department of Labor said.

The food index rose 0.2% and energy index dropped 2% while gasoline index declined 4.1%, after rising three-months in a row.

On Wall Street, Tollbooth Strategy Index gained 44.84 or 0.4% to 10,466.82.

S&P 500 index rose 13.83 or 0.7% to 1,991.76 and the Nasdaq Composite Index gained 18.43 or 0.4% to 4,879.03.

Crude oil in New York jumped $2.61 to $47.20 a barrel and gold soared $20 to $1,122.60 an ounce.

U.S. Movers

Dentsply International Inc (XRAY) dropped 2.9% or $1.59 to $52.76 after the consumable dental products maker plans to merge with the rival Sirona Dental Systems Inc in a $5.56 billion all-stock deal to create the world''''s largest dental equipment maker.

The merged entity will be named Dentsply Sirona.

Sirona shareholders will receive 1.8142 per share of Dentsply, representing a 0.7% discount to yesterday’s closing price.

The transaction is expected to closes in the first-quarter in 2016.

FedEx Corporation (FDX) slumped 3.6% or $5.56 to $148.45 after the air freight and logistics services provider reported net revenues in the first-quarter ending in August jumped 5.1% from a year ago to $12.3 billion.

Net income in the quarter declined 5.9% to $692 million or $2.42 per diluted share compared to $653 million or $2.26 from the same quarter last year.

FedEx forecasted diluted earnings per share for the fiscal 2016 between $10.40 and $10.90.

General Electric Company (GE) jumped 2.7% or 68 cents to $25.98 after the industrial conglomerate said it had divest a $3.7 billion portfolio of loans from its U.K.-based home lending business to a private equity firm Kensington Mortgage Co Ltd.

European Markets

The U.K. unemployment rate for the three months to July was unchanged at 5.5% from the three-month period to April but dropped from 6.2% in a year ago period, Office of the National Statistics said.

In a revised estimate, the annual inflation rate in the euro area fell to 0.1% from 0.2% in July. In the year ago month, the inflation rate was 0.5%, the Statistical Office of the European Communities reported.

In London trading, FTSE 100 index jumped 73.80 or 1.2% to 6,210.55 and in Frankfurt the DAX index rose 31.46 or 0.3% to 10,219.49.

In Paris, CAC 40 index advanced 70.80 or 1.6% to 4,640.17.

Anheuser Busch Inbev SA surged 7.8% to €101.80 after the Belgium-based beer and soft drink maker confirmed that it intends to make a proposal to acquire the U.K.-based rival SABMiller Plc.

SABMiller said it had no further information about the terms but ""would review and respond as appropriate to any proposal which might be made.""

SABMiller Plc stock soared 21% to 3,647 pence.

Inditex SA soared 5.6% to €30.18 after the Spain-based apparel, footwear and fashion accessories retailer reported net sales in the first-half ending in July surged 17% from a year ago to €9.42 billion.

Comparable store sales in the period jumped 7% and store and online sales in local currencies between August 1 and September 10 advanced 16%.

Net profit in the period soared 26% from a year ago to €1.17 billion compared to €928 million.

The retailer said Zara launched online sales in Hong Kong, Macau and Taiwan on September 9, with total online sales in 28 markets.

Asian Markets

Nikkei average in Tokyo closed higher following the market advance in New York.

Investors added exposure ahead of the U.S. Fed rate decision following the Bank of Japan’s action to retain the current stimulus plans.

Stocks in Tokyo closed higher following the market advance in New York and Europe.

The Nikkei 225 Stock Average jumped 145.12 or 0.8% to 18,026.48 and the broader Topix index gained 10.36 to 1,472.60.

The yen strengthened to 120.33 against a dollar.

Sony Corporation increased 1.2% to 3,096 yen after the mobile and electronic equipment maker said it will reduced the price for PlayStation 4 by 13% in the domestic market to 34,980 yen, excluding tax from October 1.

At present available price of consol game PlayStation 4 is 39,980 yen, excluding tax to increase the sales in holiday seasons.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc