* Investors get ready for Fed, German court decision
* IBM up, Knight Capital hires company to look into trading
* Energy, industrials, financials lead gainers
* Dow up 0.6 pct, S&P up 0.3 pct, Nasdaq flat
By Wanfeng Zhou
NEW YORK, Sept 11 Stocks rose on Tuesday and the
Dow industrials climb to the highest in nearly five years on
expectations the Federal Reserve will offer more stimulus to
prop up a sagging economic recovery.
The Nasdaq, however, erased gains as shares of Apple
In recent weeks the S&P 500 and Nasdaq have hovered near
recent multi-year highs on hopes for monetary stimulus by
central banks around the world.
Energy, industrial and financial firms led Wall Street's
advance, but volume was light. Contributing to gains in the Dow,
shares of International Business Machines Corp climbed
1.19 percent to $203.36. Caterpillar rose 1.94 percent
But Apple's shares slipped 0.53 percent to $659.21.
The Fed is expected to make a policy announcement on
Thursday, with economists forecasting a 60 percent chance the
U.S. central bank will announce another round of quantitative
easing at the end of its two-day meeting. Disappointing U.S.
August jobs data released last Friday bolstered that view.
"It's more likely that they will do something," said Michael
Farr, president of Farr, Miller & Washington in Washington,
D.C., which has over $800 million in assets under management.
"The one thing this market has proved over the last three,
four, or five years is that you don't fight the Fed. The
fundamentals of the economy clearly don't matter."
The Dow Jones industrial average gained 74.26 points,
or 0.56 percent, to 13,328.55. The Standard & Poor's 500 Index
gained 4.55 points, or 0.32 percent, to 1,433.63. The
Nasdaq Composite Index dropped 0.31 point, or 0.01
percent, to 3,103.71.
Some investors have concerns, however, that a lot of the
good news has already been priced in, exposing markets to a
decline should the Fed disappoint. In addition, action by the
Fed could distort market prices and would not be beneficial.
Expectations Germany's Constitutional Court would approve on
Wednesday the European Stability Mechanism -- the euro zone's
new bailout fund -- also boosted sentiment. But legal experts
believe it will impose tough conditions limiting Berlin's
flexibility on future rescues, which could be seen as a negative
Another event which could cause turbulence in markets is a
Dutch general election on Wednesday, with voters divided between
bailouts for troubled euro zone economies and austerity
Investors are keeping an eye on big-cap bellwether
technology names because of their role in global business
spending. Techs fell on Monday following Intel's
warning last week that reduced demand will hurt its
third-quarter results. Shares were up 1 percent Tuesday.
McDonald's Corp advanced 0.19 percent to $91.48
after the fast-food restaurant chain reported a 3.7 percent rise
in August sales at established restaurants around the world,
slightly below expectations of a 3.9 percent increase.
Package delivery companies FedEx Corp and United
Parcel Service Inc have received approval to provide
express-package services in some cities of China on their own,
the country's State Postal Bureau (SPB) said on its website last
week. FedEx gained 1.17 percent to $88.99 and UPS rose 0.90
percent to $73.71.
Knight Capital Group Inc said it has hired IBM to
look into the Aug. 1 trading glitch that cost the trading firm
Zynga Inc's chief marketing officer resigned on
Monday, becoming the latest senior executive to depart the
struggling social games company behind popular Facebook Inc
games such as Farmville. Zynga shares dropped 1 percent