US STOCKS-Wall St rises as Fed seen easing soon, Intel up late

* Fed discussed further money printing “before long”

* Oil drillers advance as deepwater ban lifted

* Intel shares rise after the bell, following results

* Dow up 0.1 pct, S&P up 0.4 pct, Nasdaq up 0.7 pct
* For up-to-the-minute market news see [STXNEWS/US]
(Updates close with more on Intel, latest prices and new final
paragraphs on options trade)

By Rodrigo Campos

NEW YORK, Oct 12 (BestGrowthStock) – U.S. stocks (Read more about the stock market today. ) hit fresh 5-month
highs on Tuesday as details from the Fed’s latest meeting
showed the U.S. central bank may once again flood markets with
cheap cash “before long” to further boost growth.

The minutes from the Federal Reserve’s Sept. 21 meeting
served as another strong signal for a stock market that has
surged for weeks on rising hopes for more Fed action. The S&P
500 index is up 11.5 percent since the start of September.

“The (stock) market should continue to be supported by
these positive comments from policy-makers over the next few
days,” said Zach Pandl, an economist at Nomura Securities
International in New York.

Shares of drilling contractors rose after the Obama
administration lifted its ban on deepwater drilling seven weeks
ahead of schedule. For details see [ID:nN12173911].

U.S.-traded shares of Transocean Ltd (RIG.N: ) climbed 4.7
percent to $64.81 and Diamond Offshore (DO.N: ) gained 4 percent
to $69.37. The PHLX oil services sector index (.OSX: ) rose 1.7
percent.

Intel Corp (INTC.O: ), up 1.1 percent at $19.77 during
regular trading hours, added another 1 percent to $19.97 after
hours following stronger-than-expected third-quarter results
and a forecast for better sales in the fourth quarter.
[ID:nN11136922].

In the regular session, Apple (AAPL.O: ) was up 1.1 percent
at $298.54 and led the Nasdaq’s advance after Barclays raised
its price target on the company’s stock.

Technology stocks are at their cheapest in 20 years and the
weaker U.S. dollar will likely benefit the entire sector, said
hedge fund industry pioneer Lee Ainslie. [ID:nN12184075].

The Dow Jones industrial average (.DJI: ) gained 10.06
points, or 0.09 percent, to 11,020.40. The Standard & Poor’s
500 Index (.SPX: ) rose 4.45 points, or 0.38 percent, to
1,169.77. The Nasdaq Composite Index (.IXIC: ) added 15.59
points, or 0.65 percent, to 2,417.92.

The expectation of more cheap cash helped lift bank stocks.
Bank of America (BAC.N: ) rose 2.8 percent to $13.52 and the KBW
bank index (.BKX: ) gained 1.5 percent.

Rx FOR A RALLY

Shares of Pfizer Inc (PFE.N: ), the world’s largest drugmaker
and a Dow component, gained 0.5 percent to $17.47 after it
agreed to buy King Pharmaceuticals Inc (KG.N: ) for $3.6 billion.
King Pharma shares jumped 39.4 percent to $14.15.
[ID:nN12164348].

The dollar index (Read more about the global trade. ) (.DXY: ), a gauge of the greenback against a
basket of currencies, erased its earlier gain and was down 0.16
percent at the close. Investors have of late used fluctuations
in the U.S. currency as a trigger to move into or out of
stocks. The 30-day correlation between the index and the S&P
500 ticked down to -0.90.

China’s bid to cool down its economy partly offset the
Fed’s resolve, as it sparked concerns it could crimp global
growth. An official Chinese newspaper reported the government
raised bank reserve requirements by 50 basis points, the fourth
hike this year, due to excessive lending.

The report confirmed a Reuters story on Monday.
[ID:nTOE69A05I] and [ID:nTOE69A03Y]

Nearly 7.5 billion shares traded on the New York Stock
Exchange, the American Stock Exchange and Nasdaq, just above
the 20-day moving average of about 7.48 billion.

Advancing stocks outnumbered declining ones on the NYSE by
a ratio of slightly more than 4-to-3, while on the Nasdaq,
seven stocks rose for every five that fell.

GUARDING AGAINST ‘DISAPPOINTMENT’

In the options market, a big bet hinted an investor is
bracing for a decline in the S&P 500 of nearly 5 percent within
the next month. [ID:nN12185484].

The investor’s trade, a massive bearish put spread on the
popular SPDR S&P 500 exchange-traded fund (SPY.P: ) , is
profitable if the fund’s shares fall more than 4.6 percent from
their current price, to trade below the break-even point of
$111.575 by November expiration.

The ETF was up 33 cents at $116.99.

“The trade is a way to hedge in case the earnings season is
a disappointment,” said TD Ameritrade chief derivatives
strategist Joe Kinahan.
(Reporting by Rodrigo Campos; Additional reporting by Doris
Frankel; Editing by Jan Paschal)

US STOCKS-Wall St rises as Fed seen easing soon, Intel up late