Stocks Finished Higher on Fed Comments

U.S. stocks pared early losses and closed the day with modest gains on Tuesday after Atlanta Fed president Dennis Lockhart spoke out about the Fed’s $85 billion monthly bond buying program. The Dow industrials gained 31.33 points, or 0.20%, at 15,451.01. The S&P 500 index rose 4.69 points, or 0.28%, to 1,694.16. The Nasdaq Composite climbed 14.49 points, or 0.39%, to
3,684.44.

Dennis Lockhart, president of the Atlanta Fed, said that the “uneven performance” of the economy has not permitted the Fed to provide certainty to the markets, and the central bank most likely won’t have enough data to do so at its next meeting in September.

The federal government is trying to block the proposed merger of American Airlines and US Airways, saying it would cause “substantial harm” to consumers by leading to higher fares and fees.