US SMALL/MIDCAPS-Stocks rise after Fed minutes

NEW YORK,Oct 12 (BestGrowthStock) – Mid and small cap stocks rose
on Tuesday after minutes from the Federal Reserve’s latest
meeting indicated the U.S. central bank stood ready to support
the economy.

In the minutes, officials discussed several approaches to
aiding recovery but focused on buying additional longer-term
Treasury securities and ways to nudge the public into expecting
higher levels of inflation.

Jim Grefenstette, a portfolio manager of the mid cap growth
strategy fund at Federated Investors in Pittsburgh, said
anticipation of Fed action was benefiting small and mid cap
stocks. He said the sector would outperform in the event of a
sustained rally.

“You’re going to continue to see people taking on slightly
more risk, which means going small, which means going to more
emerging markets,” he said.

After trading flat for much of the day, the S&P MidCap 400
index (.MID: ) closed up 0.4 percent while the S&P SmallCap 600
index (.SML: ) advanced 0.5 percent. In comparison, the benchmark
S&P 500 (.SPX: ) gained 0.4 percent.

In mergers and acquisitions news, shares in Actividentity
Corp (ACTI.O: ) jumped 42.9 percent to $3.23 after it agreed to
be acquired by Assa Abloy Ab (ASSAb.ST: ) for about $162 million
in cash. A recent string of M&A has helped buoy the market

Industrial distributor Fastenal Co (FAST.O: ) posted
quarterly results that beat market estimates, helped by lower
expenses and higher sales to manufacturing customers. The
shares rose 5 percent to $52.04. [ID:nSGE69B0EN]

Shares in Corinthian Colleges Inc (COCO.O: ) fell 6.8 percent
to $5.90 after the for-profit education company said its chief
operating officer will resign at the end of the month, and that
the company had no immediate plans to fill the position.

(Reporting by Edward Krudy; Editing by Andrew Hay)

US SMALL/MIDCAPS-Stocks rise after Fed minutes