* Fed sees three rate hikes in 2017
* Banks lead gainers, boost major indexes
* Yahoo falls after data breach raises concerns over Verizon
* Indexes up: Dow 0.35 pct, S&P 500 0.41 pct, Nasdaq 0.37
(Updates prices, changes comment, byline)
By Rodrigo Campos
NEW YORK, Dec 15 U.S. stocks rose on Thursday,
led by gains in bank shares, a day after the Federal Reserve
raised interest rates for the second time in nearly a decade.
The Fed sees three rate hikes next year instead of the two
foreseen in September, partly as a result of the fiscal stimulus
expected to hit under President-elect Donald Trump.
Trump's spending plans could trigger inflation and bring
about higher interest rates, making banks a likely winning
sector in the new administration.
Art Hogan, chief market strategist at Wunderlich Securities
in New York, said the advance in bank shares also reflects a
rotation into a sector which had been stagnant during most of
the multi-year rally that has seen major indexes hit record
He added that if Trump's deregulation plans come through,
lenders will benefit as they are "one of the most regulated
sectors. The one Trump sector you can be sure of is financials,"
The S&P 500 has risen just under 6 percent since the
Nov. 8 election, but its banks component has risen
almost 25 percent since.
The Dow Jones industrial average rose 69.61 points,
or 0.35 percent, to 19,862.14, the S&P 500 gained 9.17
points, or 0.41 percent, to 2,262.45 and the Nasdaq Composite
added 19.91 points, or 0.37 percent, to 5,456.58.
The Dow came within 50 points of hitting 20,000 for the
Economic data on Thursday showed U.S. consumer prices
moderated in November, but the underlying trend continued to
point to firming inflation pressures.
Yahoo fell 5.9 percent to $38.51 after the
technology company disclosed a massive data breach that raised
fears Verizon might kill a deal to buy its core internet
business. Verizon was up 0.4 percent at $51.84.
Advancing issues outnumbered declining ones on the NYSE by a
1.30-to-1 ratio; on Nasdaq, a 1.49-to-1 ratio favored advancers.
The S&P 500 posted 37 new 52-week highs and no new lows; the
Nasdaq Composite recorded 154 new highs and 51 new lows.
(Reporting by Rodrigo Campos; Editing by Nick Zieminski)