* Fed statement says rates to stay low
* S&P cuts Spain's debt rating
* Dow up 0.5 pct, S&P up 0.7 pct, Nasdaq up 0.01 pct
* For up-to-the-minute market news see []
(Updates to close)
By Edward Krudy
NEW YORK, April 28 (Reuters) - U.S. stocks rose on
Wednesday after the Federal Reserve pointed to signs of
strength in the economy, comments that gave some relief to
investors worried about possible debt defaults in Europe.
The Fed's comments on the economy and its statement that it
would keep interest rates low for an extended period lifted
bank shares. JPMorgan Chase & Co rose 2.5 percent and BKW Bank
index <.BKX> rose 1.4 percent.
Investors also scooped up shares beaten-down in Tuesday's
selloff after debt downgrades for Greece and Portugal.
Worries about some euro zone nations' fiscal health have
weighed on global markets for months. Some investors said the
Fed had Europe's turmoil in mind when designing its policy
statement.
"The fact that the Fed is keeping rates low will be a
relief for stocks, which have been in a trading range
recently." said Subodh Kumar, chief investment strategist at
Subodh Kumar & Associates in Toronto.
"The downgrades in Europe are probably having an impact on
the way the Fed is thinking. The risk is that they get frozen
into their comments about extended periods since that's
language they don't need."
The Dow Jones industrial average <> gained 53.28
points, or 0.48 percent, to 11,045.27. The Standard & Poor's
500 Index <.SPX> rose 7.65 points, or 0.65 percent, to
1,191.36. The Nasdaq Composite Index <> added 0.26 points,
or 0.01 percent, to 2,471.73.
The policymaking Federal Open Market Committee said in a
statement after a two-day meeting, "Economic activity has
continued to strengthen and ... the labor market is beginning
to improve."
That went some way to ease investors' concerns about events
across the Atlantic when Standard & Poor's cut its credit
rating on Spain by one notch, citing a more protracted period
of sluggish growth than previously expected.
Energy and financial shares were the top gainers. Besides
JPMorgan, which rose to $43.46, Exxon Mobil Corp <XOM.N> added
1.4 percent to $69.19. Both were among top boosts to the Dow
industrials.
Exxon also raised its second-quarter payout to 44 cents
per share from 42 cents in the first quarter.
Earnings season stayed in high gear, with Dow Chemical Co
<DOW.N> up 5.9 percent to $31.83 after reporting a profit that
beat expectations. [].
Comcast Corp <CMCSA.O>, the No. 1 U.S. cable operator,
posted slightly better than expected quarterly profit and
strong cash flow growth, sending its shares up 1.9 percent to
$18.81. []
Broadcom Corp <BRCM.O> shares rose 1.7 percent to $35.41 a
day after reporting a first-quarter profit, beating
expectations, and giving an outlook above the consensus
estimate. []
Teva Pharmaceutical Industries <TEVA.TA><TEVA.O> continued
to weigh on the Nasdaq after U.S. regulators warned the company
about manufacturing violations at a California plant, according
to a letter released on Tuesday. Teva's shares fell 1.7 percent
to $58.66.
About 10.98 billion shares traded on the New York Stock
Exchange, the American Stock Exchange and Nasdaq, below last
year's estimated daily average of 9.65 billion.
On the New York Stock Exchange, about three shares rose for
every two that fell, while on the Nasdaq, advancers beat
decliners by a ratio of about 11 to 10.
(Reporting by Edward Krudy; Additional reporting by Ryan
Vlastelica; Editing by Kenneth Barry)
