US STOCKS-Wall St rises for second day as Fed concerns ease

Wed Jun 26, 2013 11:17am EDT
 
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* Below-forecast GDP read eases stimulus concerns

* Mining stocks under pressure as gold tumbles

* Adobe and Microsoft rise on analyst upgrades

* Indexes up: Dow 0.6 pct, S&P 0.5 pct, Nasdaq 0.6 pct

By Ryan Vlastelica

NEW YORK, June 26 (Reuters) - U.S. stocks advanced for a second straight day on Wednesday as a weak reading on economic growth had the effect of easing concerns that the Federal Reserve would soon begin to lessen its stimulus.

The economy grew 1.8 percent in the first quarter, according to the final read on gross domestic product, well below expectations for 2.4 percent growth.

While the data is backward-looking and covers a period when the economy was impacted by government sequestration, analysts said it could weigh on the Fed as it considers whether the economy is strong enough for it to start scaling back its monetary stimulus.

A benefit of the weaker-than-expected report "is that despite all the rhetoric and fear about tapering, this will keep the Fed firmly planted in stimulus, which is a positive for the market," said Michael Mullaney, chief investment officer at Fiduciary Trust Co in Boston.   Continued...