By Anora Mahmudova and Barbara Kollmeyer, MarketWatch

S&P 500 breaks through 50-day moving average

The Dow Jones Industrial Average advanced for a fifth consecutive session Thursday--its longest winning streak this year.

Gains in the broader stock market came after minutes from the Federal Reserve's latest policy meeting, released at 2 p.m. Eastern, offered few surprises, showing that Fed officials were largely hesitant to hike rates for the first time in nearly a decade due to worries about global risk.

"There was not anything surprising in the minutes, as we already knew why they decided to hold off the interest-rate hikes, so markets saw no obstacles to climb," said Quincy Krosby, market strategist at Prudential Financial.

The late-day rally for stocks was preceded by nervous trading as investors awaited details on the thinking behind the Fed's decision to leave rates unchanged in September.

Read: Fed minutes show worries about overseas led to caution at rate meeting (http://www.marketwatch.com/story/fed-minutes-show-worries-about-overseas-led-to-caution-at-rate-meeting-2015-10-08)

(http://w.graphiq.com/w/cJGF9QTZUep)

"There is a relief that the Fed acknowledged China, but also said its impact will be transitory," said Ryan Larson, head of equity trading, U.S. RBC Global Asset Management.

The Dow Jones Industrial Average gained 138.46 points, or 0.8%, to 17,050.75, closing above 17,000 for the first time since August. Caterpillar Inc. (CAT) lead gainers and rose 2.3%.

The S&P 500 index added 17.60 points, or 0.9%, to 2,013.43, closing above its 50-day moving average. The Nasdaq Composite ended the day up 19.64 points, or 0.4%, at 4,810.79, overcoming a slumping biotech sector that had weighed it down for most of the session.

Larson noted that the S&P 500 surpassing the 2,000 level and trading above its 50-day moving average has improved investors' optimism.

Some market participants attributed gains in the stocks after the minutes were released to a lack of surprises to deter investors.

Need to know: Why this stock-market rebound isn't just a 'flash in the pan' (http://www.marketwatch.com/story/why-this-stock-market-rebound-isnt-just-a-flash-in-the-pan-2015-10-08)

Fed minutes: A violent pullback in the stock market and concerns about China were critical in the Federal Reserve's decision to keep interest rates near zero, the newly released minutes show. "Many [officials] acknowledged that recent global economic and financial developments may have increased the downside risks to economic activity somewhat," the minutes from the Federal Open Market Committee said.

In economic news, the jobless claims reported showed the number of people who applied for U.S. unemployment benefits (http://www.marketwatch.com/story/jobless-claims-fall-to-263000-lowest-since-july-2015-10-08) fell by 13,000 to 263,000 in the week ended Oct. 3, marking the lowest level since mid-July.

Stocks to watch:Alcoa Inc.(AA)unofficially kicked off the start of the earnings season reporting results after the market close on Thursday. Alcoa shares fell 5% in after-hours trade as earnings missed Wall Street expectations.

Shares of Encana Corp. (ECA) rose 6.6% after Canada Pension Plan Investment Board and The Broe Group said they have agreed to buy oil and gas assets from the company for a value of about $900 million (http://www.marketwatch.com/story/cppib-and-broe-group-to-buy-encana-oil-gas-assets-for-900-million-2015-10-08).

Dell Inc. is in talks to combine with EMC Corp.(EMC), according to people familiar with the matter, reported The Wall Street Journal late Wednesday (http://www.marketwatch.com/story/dell-discussing-merger-with-emc-sources-say-2015-10-07). EMC shares rose 4.7%.

Netflix Inc.(NFLX) shares jumped 6% after the company raised the price of its most popular streaming plan in the U.S. by $1 for new customers as it ramps up investment in original shows and movies.

Other markets: The Shanghai Composite Index posted gains of slightly less than 3%, as that market reopened after a five-session holiday break. But the increase wasn't enough to satisfy investors. The Hang Seng China Enterprises Index rallied 11.5%, while the Chinese market was closed, and investors had expected bigger gains from China, said Angus Nicholson, market analyst at IG.

Also read: China could become a big problem for stocks again (http://www.marketwatch.com/story/china-could-become-a-big-problem-for-us-stocks-again-2015-10-07)

The Nikkei 225 index finished down nearly 1%, after weak Japanese machinery orders prompted buying of the Japanese yen , which rose against the U.S. dollar (http://www.marketwatch.com/story/us-dollar-lower-against-yen-as-nikkei-falls-2015-10-08-21031810).

European stocks closed mostly higher, with the FTSE 100 index finishing with gains for a seventh straight day (http://www.marketwatch.com/story/ftse-100-breaks-six-day-winning-streak-ahead-of-boe-meeting-2015-10-08). The Bank of England left key interest rates unchanged at the conclusion of its rate-setting meeting.

Oil prices (http://www.marketwatch.com/story/oil-prices-rise-but-market-concerned-over-us-stockpiles-2015-10-08) jumped 3.4% to settle at $49.43 a barrel. Gold prices settled 0.4% lower at $1,144.30, but climbed to $1,150.20 an ounce after the FOMC minutes.

 

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(END) Dow Jones Newswires

October 08, 2015 17:37 ET (21:37 GMT)

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