* Dow less than 1 pct away from hitting 20,000 mark
* Fed begins two-day meeting; statement on Wednesday
* Tech stocks jump; Apple among the biggest boosts
* Indexes up: Dow 0.36 pct, S&P 0.43 pct, Nasdaq 0.99 pct
(Adds details, changes comment, updates prices)
By Tanya Agrawal
Dec 13 U.S. stocks hit all-time highs on
Tuesday, with the Dow Jones Industrial average coming within
striking distance of the 20,000 mark, as a post-election rally
All the three major indexes hit fresh record highs shortly
after the open. The Dow has risen about 8.6 percent since Nov.8,
with President-elect Donald Trump's expected agenda of economic
stimulus and reduced taxes and regulations fueling a rally.
"The macro and fundamental background are favorable for
stocks and we expect equities to trend higher as we head into
2017," said Terry Sandven, chief equity strategist at U.S. Bank
"Investors are encouraged by expectations that Trump and a
GOP-controlled Congress will enact pro-growth policies and we're
seeing modest inflation creep in while housing remains stable
and wages continue to firm."
Market participants are also keeping a close watch on the
Federal Reserve's two-day meeting, starting today, where the
central bank is widely expected to lift interest rates for the
second time since the financial crisis.
A hike of 25 basis points in the Fed's target range of
0.25-0.50 percent is priced in, but investors will be examining
the Fed's statement and economic forecasts for signs of the
central bank's thinking on how Trump's election has affected the
outlook for growth and inflation.
Still, there are some concerns regarding the high
valuations. The S&P 500 is trading near 17.7 times forward
12-month earnings, above the 10-year median of 14.7 times,
according to StarMine data.
"Valuations are elevated at the moment and we know that the
pace that equities are advancing at won't be sustainable unless
earnings continue to grow," said Sandven.
At 10:53 a.m. ET (1553 GMT) the Dow Jones industrial average
was up 70.87 points, or 0.36 percent, at 19,867.3, the
S&P 500 was up 9.91 points, or 0.439086 percent, at
2,266.87 and the Nasdaq Composite was up 53.72 points,
or 0.99 percent, at 5,466.26.
Seven of the 11 major S&P sectors were higher, with the
technology index's 1.29 percent jump leading the
Apple was up 1.5 percent, while IBM rose
Inovalon Holdings slumped 35.3 percent to $9.60.
The healthcare data analytics company's fourth-quarter revenue
forecast came in below expectations.
VeriFone Systems rose 8.7 percent to $17.88 after
the payment card machine maker's quarterly results beat
Declining issues outnumbered advancers on the NYSE by 1,436
to 1,389. On the Nasdaq, 1,401 issues rose and 1,249 fell.
The S&P 500 index showed 31 new 52-week highs and one new
low, while the Nasdaq recorded 136 new highs and 23 new lows.
(Reporting by Tanya Agrawal; Editing by Sriraj Kalluvila)