News Summary: Stocks rise on Fed stimulus hopes

AP News
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Posted: Jun 19, 2012 5:09 PM
News Summary: Stocks rise on Fed stimulus hopes

FED FOCUS: Stocks rose sharply on Wall Street Tuesday traders latched on to recent signals from the Federal Reserve that the central bank may reveal plans to stimulate the economy at the end of its two-day meeting Wednesday.

MICROSOFT LEADS: Microsoft was one of the biggest gainers in the Dow. The stock jumped 3 percent after the company announced a new tablet computer called Surface to compete with the immensely popular iPad from Apple.

BANKS CHEER CLARITY: Financial companies were among the best performing stocks. Bank of America rose the most, 4.5 percent. A federal housing agency said it will clarify the process under which home lenders are forced to buy back soured home loans. The buybacks have cost banks billions of dollars.