Wall Street moved higher overnight, bolstered by the minutes of the September Federal Reserve meeting, as investors geared up for a fresh US earnings season.
Alcoa is set to report its latest results after the market close, with a flood of reports to follow next week.
"This particular earnings season will be a period for most companies to really start talking about next year," Eric Schoenstein, Portland, Oregon-based co-manager of the US$4.9 billion Jensen Quality Growth Fund, told Bloomberg. "That could be a way to provide some direction. We need some transparency to clear up the confusion around where the economy is headed, where companies are headed."
Equity investors found relief on Thursday in the minutes from the latest Federal Open Market Committee meeting, which firmed expectations policy makers will persist in their efforts to stoke economic growth. The US dollar weakened, however.
Policy makers "agreed that developments over the intermeeting period had not materially altered the Committee's economic outlook," according to newly-released minutes of the September 16-17 meeting. "Nevertheless, in part because of the risks to the outlook for economic activity and inflation, the Committee decided that it was prudent to wait for additional information confirming that the economic outlook had not deteriorated and bolstering members' confidence that inflation would gradually move up toward 2 percent over the medium term."