US STOCKS-Wall St climbs on Fed expectations; Tesla tumbles

Reuters

* Tesla drops after results, outlook

* Barracuda Networks jumps in debut

* Ralph Lauren climbs after earnings, dividend boost

* Indexes up: Dow 0.65 pct, S&P 0.50 pct, Nasdaq 0.18 pct

By Chuck Mikolajczak

NEW YORK, Nov 6 (Reuters) - U.S. stocks rose on Wednesday onhopes the Federal Reserve will keep its stimulus measures inplace longer than anticipated and amid a flurry of new publicofferings.

John Williams, president of the San Francisco FederalReserve Bank, in concurrence with recent statements of centralbankers, said Tuesday the Fed should wait for stronger evidenceof economic momentum before pulling back on its massivebond-buying program.

The equity market was also buoyed by a host of initialpublic offerings, with six new issues expected to start tradingWednesday, a day ahead of the highly anticipated IPO of TwitterInc. Barracuda Networks Inc shares jumped 27.1percent to $22.88 early on its first trading day.

According to Thomson Reuters data, if all 13 scheduled IPOsprice this week, it will be the busiest week of the year interms of number of primary issues, as well as the most briskweek since September 2007.

"One of the barometers for the health of market conditionswe look at is the ability for the market to absorb a largeamount of IPOs," said Art Hogan, managing director at LazardCapital Markets in New York.

The Dow Jones industrial average rose 101.66 pointsor 0.65 percent, to 15,719.88, the S&P 500 gained 8.76points or 0.5 percent, to 1,771.73 and the Nasdaq Composite added 6.969 points or 0.18 percent, to 3,946.833.

Tesla Motors Inc shares slumped 11.9 percent to$155.75 after the electric car maker forecast aweaker-than-expected fourth-quarter profit and its third-quarterModel S deliveries disappointed some analysts.

Ralph Lauren Corp shares advanced 4.2 percent to$178.46 after the designer clothing company raised the lower endof its full-year sales forecast on the expectation of stronggains during the holiday quarter, and increased its dividend.

S&P companies expected to report Wednesday include QualcommInc and Whole Foods Market Inc.

Adding to speculation about a more dovish Fed, two of theFederal Reserve's top staff economists made the case in newresearch papers for more aggressive action by the U.S. centralbank to drive down unemployment by promising to hold interestrates lower for longer.

Many market participants anticipate that the Fed will holdoff on scaling back its $85 billion monthly bond purchases untilnext year, on expectations the partial government shutdown inearly October has dented the economy. However, some feel themarket will be able to absorb a tapering of stimulus inDecember.

"To the extent that what has changed about the Fed - interest rates may be lower longer, even in an environment oftapering quantitative easing, which is, at best, a neutral, butit's not a negative," said Hogan.

The Conference Board said Wednesday its Leading EconomicIndex rose 0.7 percent to 97.1 in September, slightly above the0.6 percent estimate, suggesting some momentum in the economybefore last month's partial shutdown of the federal government.

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