The stock markets in the United States gained after the Federal Reserve stated that it would maintain interest rates low for a “considerable time” following the end of its bond-buying program.

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In a telephone interview with Bloomberg, Eric Davidson, deputy chief investment officer at Wells Fargo Private Bank commented, “The market quickly used its search function to find the phrase ’considerable time’ and it’s in there, which was comforting.”

Davidson noted that the policy makers “have been real clear about the lift-off of rates.” He believed that an increase in the interest rates will not happen until next summer.

“With inflation data this morning, they can’t afford to step down the brakes on easing just yet,” added Davidson.

The Federal Reserve said the U.S. economy is growing moderately, and the inflation is below its goal. The policy makers maintained their commitment to keep the interest rates near zero for considerable time after the completion of its bond-buying program.

The policy makers are monitoring the labor market and prices to weigh if the economic recovery is strong enough to survive the impact of higher interest rates.

The Federal Reserve increased its median estimate for the federal fund rates to 1.375% by the end of 2015. The rate will increase to 3.75% by the end of 2017, based on its Summary of Economic Projections.

U.S. Markets

• Dow Jones Industrial Average (DJIA)- 17,156.85 (+0.15%)
• S&P 500- 2,001.57 (+0.13%)
• NASDAQ- 4,562.19 (+0.21%)
• Russell 2000- 1,153.89 (+0.25%)

European Markets

• EURO STOXX 50 Price EUR- 3,237.44 (+0.49%)
• FTSE 100 Index- 6,780.90 (-0.17%)
• Deutsche Borse AG German Stock Index DAX- 9,661.50 (+0.30%)

Asia-Pacific Markets

• Nikkei 225- 15,888.67 (-0.14%)
• Hong Kong Hang Seng Index- 24,376.41 (-1.00%)
• Shanghai Shenzhen CSI 300 Index- 2,401.33 (+0.53%)

Stocks in Focus

Adobe Systems Incorporated (NASDAQ:ADBE) declined more than 4% to $67.30 per share after the company reported lower than expected revenue for the third-quarter. The company generated $1.01 billion in revenue compared with the $1.02 billion revenue estimated by analysts. Its earnings of $0.28 per share beat the $0.26 per share consensus estimate.

The stock price of FedEx Corporation (NYSE:FDX) increased more than 3% to $159.71 per share after the company reported better than expected earnings for its first-quarter fiscal 2015. The shipping company posted a 24% increase in net income to$606 million or $2.10 in earnings per diluted share.

The shares of Lennar Corporation (NYSE:LEN) gained nearly 6% to $41.40 per share after company reported earnings higher than the consensus estimate of Wall Street analysts. The second-largest homebuilder in the United States posted $0.76 in earnings per share compared with the $0.67 per share expected by analysts.