Stocks Rose, Eyed on Fed Statement

U.S. stocks rose in the early trading on Wednesday, ahead of a key statement by the Federal Reserve, which is expected to provide clues on the next monetary policy move by the U.S. central bank. The Dow Jones industrial average lately rose 24.90 points, or 0.15%, to 17,156.87. The S&P 500 gained 4.11 points, or 0.21%, to 2,003.09. The Nasdaq Composite added 5.16 points, or 0.11%, to 4,557.92.

Even after five years of steady economic growth, Federal Reserve Chair Janet Yellen is likely to raise interest rates only gradually between 2015 and 2017 as inflation remains muted, according to a Bloomberg survey of economists.

U.S. consumer prices fell in August for the first time in 16 months, largely because of a decline in the cost of filling up at the gas
station, the government reported Wednesday. Lower energy costs helped offset another increase in the price of groceries.

The U.S. current account deficit fell by 3.8% to $98.5 billion in the second quarter from a revised $102.2 billion in the first quarter, the Commerce Department said Wednesday.

Auxilium Pharmaceuticals shares surged in brisk premarket trading Wednesday, a day after receiving an unsolicited offer from Endo International.

In a deft and creative move, Sears Holdings Corp. CEO and chairman Edward Lampert is providing the struggling retailer with a $400 million short-term loan from the affiliates of the hedge fund he controls.