Wall St. Closes Higher After 2 Days of Losses

By THE ASSOCIATED PRESS September 10, 2014

The stock market moved higher on Wednesday after two days of losses. Worries over the timing of a American interest rate increase and economic weakness in China kept trading subdued.

KEEPING SCORE The Dow Jones industrial average rose 54.84 points, or 0.3 percent, to close at 17,068.71, according to preliminary figures. The Standard & Poor's 500-stock index rose 7.25 points, or 0.4 percent, to 1,995.69. The Nasdaq composite index rose 34.24 points, or 0.8 percent, to 4,586.52.

DOUGHNUT DOLDRUMS Krispy Kreme Doughnuts fell 54 cents, or 3.1 percent, to $17.07 after the company reported earnings that fell short of analysts' forecasts.

APPLE A DAY A day after Apple announced it a new smartwatch, a bigger iPhone and a new mobile-payment system, its shares rose $3.01, or 3.1 percent, to $101.

Interactive Feature | Standard & Poor's 500-Stock Index

EBAY FALLS AGAIN Shares of eBay fell for a second day after Apple's announcement on Tuesday that would introduce a new mobile-pay system for shoppers. EBay's stock lost $1.63, or 3.1 percent, to $51.10, with investors seeing Apple's payment system as a direct competitor to eBay's PayPal division.

GARMIN REBOUNDS Shares of the GPS device maker Garmin rose $2.06, or 4 percent, $53.77. The stock fell 3.5 percent on Tuesday after Apple also announced it would begin selling a smartwatch next year. Garmin has heavily invested in watches used by athletes to track their performance.

SECURITY STOCK SURGE Palo Alto Networks stock jumped $9.47, or 10.6 percent to $98.75 after the security software maker said it expected revenue to climb to as much as $182 million in its fiscal first quarter. Analysts surveyed by Zacks had expected revenue of $173.2 million.

THE FED Investors are looking more closely at the Federal Reserve and whether it might raise its benchmark interest rate sooner than expected. In a paper this week, two San Francisco Fed economists said the public appeared to expect a "more accommodative policy" than Fed board members.

Steven Ricchiuto, chief economist at Mizuho Securities, said he expected that many investors now think the Fed will raise rates early next year, rather than over the summer.

The Fed meets next week to discuss possible changes to its monetary policy.

THE QUOTE "The market is betting that the Fed won't be overly accommodative," Mr. Ricchiuto said. "The worst things for stocks would be the Fed to raise rates sooner rather than later."

CHINA'S STRUGGLE Investors are keeping an eye on China amid signs of slumping economic growth. Manufacturing growth slowed in August and imports unexpectedly shrank by 2.4 percent.

ENERGY Crude oil prices fell to their lowest level in 16 months. Crude for October delivery dropped $1.08 to settle at $91.67 a barrel on the New York Mercantile Exchange. With China slowing and the eurozone possibly slipping into a third recession since the financial crisis, demand for oil remained weak while supply was ample.

The drop in oil prices pulled several big energy stocks lower. Chevron fell 90 cents, or 0.7 percent, to $124.28, while Exxon Mobil lost 58 cents, or 0.6 percent, to $96.81.

BONDS Bond prices fell. The yield on the 10-year Treasury note rose to 2.53 percent, from 2.50 percent late Tuesday.

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