The Dow ended at 11,215.92, a gain of 342.95 on the day. The Fed has shaved the federal funds rate, a benchmark for bank lending rates, by 2.5 points since the start of the year in an effort to spur economic growth. Stocks were mixed on Tuesday, when the Fed announced its latest cut. But on Wednesday, bullish comments from software maker BEA Systems Inc., chip equipment maker Applied Materials Inc. and doughnut maker Krispy Kreme Doughnuts Inc. also helped boost confidence, especially in precious metals, biotechnology and software shares. Even as many big companies are still announcing layoffs and other cost-cutting efforts, Pradilla said the economy does have some brighter spots.
Housing is still very strong.
We are seeing some strong auto sales. The company is expected to show a profit of 15 cents a share. Stores shares rose 4.8 percent after the firm posted a first-quarter profit from operations of 42 cents a share, beating the street. Consumer spending has stayed strong despite signs of a slowdown. Unemployment is up, payrolls are down and manufacturing is struggling.