Sept. 13 - Summary of business headlines: Stocks jump on Fed stimulus plan; jobless claims up more than expected; Wholesale inflation rises in August; Nintendo Wii U to launch November 18. Bobbi Rebell reports.
PLEASE NOTE: THIS EDIT CONTAINS 4:3 MATERIAL Stocks surged higher on news the Federal Reserve will take more aggressive action to help the weak U.S. economy. The U.S. central bank said it will buy $40 billion of mortgage-backed debt per month, and it will continue to purchase assets until the outlook for jobs improves substantially- as long as inflation remains contained. They kept the scope of the program open ended, strategically. Fed Chairman Ben Bernanke: SOUNDBITE: BEN BERNANKE, CHAIRMAN, U.S. FEDERAL RESERVE (ENGLISH) SAYING: "This is a conditional program. We are going to be providing accommodation according to how the economy evolves. I think that the virtue of putting it this way, is that if the economy is weaker we will provide more support. If the economy strengthens on its own or other headwinds die down then it will require less support." Stocks celebrated the move; The Dow jumping more than 200 points, and the other major indexes posting strong gains as well. Brian Jacobsen, chief portfolio strategist at Wells Fargo Advantage Funds: SOUNDBITE: BRIAN JACOBSEN, CHIEF PORTFOLIO STRATEGIST, WELLS FARGO ADVANTAGE FUNDS (ENGLISH) SAYING: "I think where, really, what is providing some support to the market is optimism on the part of investors that the long term growth outlook for the economy hasn't really been crippled or compromised by the current monetary policy and in fact it's perhaps being somewhat supported by it." More evidence of the continued weakness in the jobs market: the number of Americans filing new claims for jobless benefits rose more than expected last week to 382,000. Separately, the August producer price index, which measures inflation at the wholesale level increased 1.7 percent. That is the largest increase since June of 2009. Another shot in the battle for the living room: Nintendo will launch the Wii U on Sunday November 18. Entry level price: $299. It will have an entertainment component called the Nintendo TVii. In Europe: a mixed picture with the London FTSE closing higher. Bobbi Rebell, Reuters.