The Standard & Poor’s 500 index extended a record and global equities rallied as the Federal Reserve’s policy statement fueled optimism that the economic recovery will accelerate.
The S&P 500 rose 0.1 percent to a record 1,959.48. The benchmark equity index advanced for a fifth straight day, the longest streak since April. The Dow Jones industrial average increased 14.84 points, or 0.1 percent, to 16,921.46.
The Nasdaq composite index slid 0.1 percent after reaching a 14-year high Wednesday. The MSCI all-country world index added 0.6 percent Wednesday to a record.
BlackBerry Ltd. (Nasdaq: BBRY) jumped 9.7 percent after reporting a narrower loss than analysts had projected. Kroger Co. (NYSE: KR) advanced 5.1 percent as it increased its full-year profit forecast.
Coach Inc. (NYSE: COH) slumped 8.9 percent, the most in the S&P 500, to $35.69 after the largest U.S. luxury handbag maker forecast a prolonged slump in sales at its North American stores.
KBR Inc. (NYSE: KBR) dropped 7.1 percent to $24.46. after saying it will undergo a “strategic review” of its business.
Equities briefly extended an earlier loss after President Barack Obama said he’s sending as many as 300 U.S. military advisers to assist the Iraqi army battle an insurgency and is prepared to take additional “targeted, precise” action if necessary.
The S&P 500 dropped 0.7 percent last week as violence in Iraq sent the price of Brent crude to its highest level in 11 months.
The Chicago Board Options Exchange Volatility Index, known as the VIX, added 0.1 percent to 10.62 Thursday, after closing at the lowest level since 2007 Wednesday. The measure of volatility has dropped 23 percent this year, and is within two points of its record low reached in 1993.
About 5.8 billion shares changed hands on U.S. exchanges, 5.6 percent below the three-month average. Six out of 10 main industries in the S&P 500 rose, with utility shares advancing 0.9 percent for the best performance. Technology and raw-material companies led declines.
BlackBerry jumped 9.7 percent to $9.09. The smartphone maker reported a narrower loss than analysts estimated as cost cuts and asset sales helped drive the company’s turnaround under a new boss. CEO John Chen said he has stabilized the struggling company enough to now set his sights on growth.
Kroger rose 5.1 percent to $49.66 for the largest advance in the S&P 500. The nation’s largest supermarket chain said profit this year will be more than it previously forecast, helped by increased sales from its purchase of Harris Teeter.
Red Hat Inc. (NYSE: RHT) gained 3.8 percent to $55.11. The largest seller of Linux operating-system software said annual earnings will be as much as $1.79 billion in fiscal 2015, higher than the $1.73 billion to $1.76 billion it had forecast in March. The company’s first-quarter adjusted profit of 34 cents a share and sales of $424 million beat analyst estimates.
Starbucks Corp. (Nasdaq: SBUX) rose 2.2 percent to $77.23. UBS AG boosted its rating on the world’s largest coffee-shop chain to “buy” from “neutral” and its stock-price estimate to $87 from $80. The brokerage said Starbucks is one of the companies with the best long-term growth opportunities among consumer multinationals.
American Apparel Inc. (NYSEMKT: AAP) increased 6.7 percent to 68 cents. The casual clothing maker replaced its CEO, Dov Charney, who has faced accusations of sexual harassment, after an investigation into misconduct at the company he created.