Stocks Edged Up on Fed

U.S. stocks edged up on Friday as Federal Reserve comments spurred optimism that the economic recovery will accelerate. The Dow Jones Industrial Average lately gained 19.62 points, or 0.12%, to 16,941.08. The S&P 500 rose 3.16 points, or 0.16%, to 1,962.64. The Nasdaq Composite advanced 4.67 points, or 0.11%, to 4,363.99.

Federal Reserve chief Janet Yellen signaled that rational exuberance is just fine. That, at least, is how some of America’s largest money managers interpreted her comments on Wednesday suggesting interest rates will remain low through 2016.

British drugmaker Shire has rejected a 27 billion-pound ($46 billion) takeover offer from AbbVie, the latest attempt by a U.S. healthcare firm to tap into lower tax rates abroad via an acquisition.

Darden Restaurants Inc reported a much-lower-than-expected quarterly profit as costs soared and sales at its flagship Olive Garden restaurant chain fell. Net income fell to $86.5 million, or 65 cents per share in the fourth quarter ended May 25 from $133.2 million, or $1.01 per share, a year earlier.